KSE-100 Index closes down 609 points, investors cautious

Karachi: The Pakistan Stock Exchange witnessed volatility during trading on Monday, while the KSE-100 Index closed in the negative zone due to profit-taking by investors.

According to market data released by the Pakistan Stock Exchange, the KSE-100 Index closed at 170,506.31 points after falling 609.51 points, which is 0.36 percent less than the previous trading day.

The market opened at 170,279.54 points, while the index reached a high of 171,304.11 points during trading. However, the market later came down due to selling pressure and at one point saw a low of 169,583.45 points.

According to analysts, the selling trend in banking, cement and large investment groups added pressure to the market. Investors appeared to adopt a cautious strategy after the recent rally.

According to the data, the total trading volume of shares of companies included in the index was recorded at 634.15 million shares, which reflects significant activity in the market.

United Bank Limited was the top detractor among the companies that negatively impacted the market, shedding 298.35 points from the index. Lucky Cement shed 147.45 points while Engro Holdings, Meezan Bank and National Bank also added pressure to the market.

On the other hand, K-Electric was prominent among the stocks that showed positive performance, adding 80.10 points to the index.

TRG Pakistan, Pakistan Petroleum Limited, Systems Limited and Engro Fertilizers were also among the companies that supported the market.

Economic experts say that in recent days, investors have been keeping a close eye on the country’s economic indicators, interest rates, inflation and oil prices in the global market. That is why cautious buying and selling is ongoing in the market.

According to the report, the KSE-100 index has shown a positive performance of 35.72 percent since the beginning of the financial year, while on a calendar year-to-date basis the index is still in the negative zone of 2.04 percent.

According to brokerage houses, local investors are now mainly preferring to invest in strong companies, especially those companies whose profits, dividends and future financial results are stable.

Investor interest in the technology, energy and fertilizer sectors remained, while the trend of profit-taking in the banking sector affected the overall performance of the index.

According to market experts, corporate results, foreign exchange reserves, rupee appreciation and the effects of government economic policies will determine the direction of the stock market in the coming days.

Analysts have advised investors to adopt a long-term investment strategy in uncertain times and avoid emotional decisions.