The equity market experienced a decline on Thursday as investors engaged in profit-taking after a recent record-breaking rally, leading to a much-needed market correction. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 149,235.26 points, marking a decrease of 1,355.74 points, or -0.9%, from its previous closing of 150,591.00.
During the trading session, the index reached an intraday high of 151,249.62, gaining 658.62 points (0.44%), before reversing course to hit a low of 148,272.57, representing a significant 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. He added that with the result season nearing its end, the “much needed correction is happening.”
In related news, the government raised Rs492 billion from the auction of market treasury bills on Wednesday, exceeding its target of Rs450 billion. The yields remained mostly stable, with the cut-off yields on one-month and three-month T-bills holding at 10.8996% and 10.8502% respectively. The six-month yield remained flat at 10.8501%, with only a minor decline of two basis points.
Additionally, central bank data showed that Pakistan’s current account deficit for July was $254 million, a 27% narrowing from the $348 million deficit recorded in the same month last year. This deficit follows a surplus of $335 million in June. As of August 8, the foreign exchange reserves held by the State Bank of Pakistan stood at $14.24 billion.
On Wednesday, the benchmark KSE-100 Index had surged by 820.26 points (0.55%) to close at 150,591 points, its first close above the 150,000 level. During that session, the index had reached a high of 151,261.67 and a low of 149,931.68.
