PSX closes in red after Profitability Index breaks below historic 54,000 mark

KARACHI: A largely positive run turned negative in recent hours as the benchmark KSE-100 suffered a slight decline, shedding over 120 points after crossing the all-time high of 54,000.

The KSE-100 hit an all-time high of 54,278 – in line with its winning streak – after the opening bell. However, profit-taking dragged the market down and it lost 124.63 points, or 0.23%, to close at 53,735.73, from yesterday’s close of 53,860.36.

Experts had attributed the upward movement to positive macroeconomic indicators and hopes for a good outcome from ongoing talks with the International Monetary Fund (IMF).

The head of the Pakistan-Kuwait investigation, Samiullah Tariq, said Geo.tv: “Expectations of a monetary policy rate cut and strong corporate profitability are among the driving forces that supported the KSE-100.”

The increase also came from the announcement of general elections as investors hoped for much-needed political stability in the country.

The IMF review mission is currently in Pakistan to complete the first review under the $3 billion loan program and the potential release of the second tranche of $700 million by the end of December 2023.

The tranche would go through if both sides manage to reach a staff-level deal at the end of the talks.

Total trading volumes fell to 506.07 million shares from Monday’s 546.54 million. The value of shares traded during the day was Rs 18.25 billion.

Shares of 365 companies were traded. Of these, 125 stocks closed higher, 220 declined and 20 remained unchanged.

Cnergyico PK was the volume leader with 50.4 million shares traded, gaining Rs 0.04 to close at Rs 4.15. It was followed by Pak Refinery with 36.2 million shares, losing Rs 1.63 to close at Rs 21.67 and Kohinoor Spining with 34.7 million shares, losing Rs 0.2 to close at Rs2.33.