The Pakistan Stock Exchange (PSX) slipped on Thursday as investors engaged in profit-taking following a record-breaking rally. The market’s benchmark KSE-100 Index initially climbed to an intraday high of 151,249.62, gaining 658.62 points (0.44%), before retreating to a low of 148,272.57, a sharp drop of 2,318.43 points (-1.54%).
“The market is experiencing some profit taking at the end of an incredible rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “The result season is almost at an end and the much needed correction is happening,” he added.
The government raised Rs492 billion from the auction of market treasury bills on Wednesday, exceeding its target of Rs450 billion, while yields remained largely steady. The cut-off yields on one-month and three-month T-bills held at 10.8996% and 10.8502% respectively, and the six-month yield stayed flat at 10.8501%, with only a minor decline of two basis points.
Pakistan posted a current account deficit of $254 million in July, a 27% decrease from the $348 million deficit in the same month last year, according to central bank data. This deficit followed a surplus of $335 million in June. As of August 8, foreign exchange reserves held by the State Bank of Pakistan stood at $14.24 billion.
On Wednesday, the KSE-100 Index surged by 820.26 points (0.55%) to close at 150,591 points, marking its first close above the 150,000 level. The index had reached a high of 151,261.67 and a low of 149,931.68 during that session.
