KARACHI: The Pakistan Stock Exchange (PSX) witnessed a volatile start to trading on Tuesday, with the benchmark KSE-100 Index fluctuating between gains and losses within minutes as investors resorted to profit-taking following Monday’s strong rally.
The market opened on a firm note, extending the bullish momentum from the previous session when the KSE-100 Index surged by more than 2,100 points, driven by broad-based buying and renewed optimism after foreign investors turned net buyers for the first time in 23 months.
In early trade on Tuesday, the benchmark KSE-100 Index gained 162.03 points (0.09%) to 178,362.05, with 201 stocks advancing against 96 decliners, while 266 issues remained unchanged.
More than 16.31 million shares changed hands in 8,948 transactions, generating a turnover of Rs699 million.
However, the initial gains quickly evaporated as investors locked in profits. Within the next five minutes, the KSE-100 slipped into negative territory, shedding 42.39 points (0.02%) to 178,157.63.
Selling pressure also widened, with declining stocks increasing to 144, compared with 196 advancing issues, while trading volume climbed to 38.26 million shares worth Rs1.41 billion.
The weakness proved temporary as fresh buying emerged in heavyweight stocks, helping the benchmark recover once again.
By 9:45am, the KSE-100 Index had rebounded 297.69 points (0.17%) to 178,497.71, reflecting renewed buying interest.
Market participation also strengthened during the period, with traded volume rising to 61.78 million shares, valued at Rs2.21 billion, through 27,497 trades. Market breadth improved as well, with 238 stocks advancing against 131 decliners, while 194 issues remained unchanged.
The broader market mirrored the benchmark’s movement. By 9:45am, the All Share Index was up 234.68 points (0.22%), the KSE-30 Index had gained 97.37 points (0.18%), while the KMI-30 and BKTI indices advanced 0.17% and 0.25%, respectively.
Analysts said Tuesday’s early volatility reflected a tussle between profit-taking by short-term investors and fresh institutional buying, a pattern that has become increasingly common after the market’s recent sharp gains.
They noted that while investors remain encouraged by improving macroeconomic indicators and the return of foreign portfolio investment, many are also choosing to book profits at higher levels following the benchmark’s rapid advance in recent sessions.
Market participants will now watch whether institutional support remains strong enough to keep the KSE-100 Index comfortably above the 178,000-point mark and extend the rally later in the trading session.
