RECORDER REPORT

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp correction on Wednesday as investors opted to book profits following the market’s recent record-breaking rally.

The benchmark KSE-100 Index dropped by 826 points or 0.62 percent to settle at 132,577 points down from the previous day’s 133,403 points. During the session, the index moved between a high of 133,566 points and a low of 132,326 points.

On Wednesday, BRIndex100 closed at 13,461.61 points, losing 87.27 points or 0.64 percent, with a total volume of 684.31 million shares. Meanwhile, BRIndex30 settled at 39,531.09 points, down by 282.48 points or 0.71 percent, with total traded volume standing at 389.56 million shares.

According to analysts at Topline Securities, the market saw a phase of consolidation as investors opted for profit-taking. The decline was mainly driven by negative contributions from index-heavyweights such as Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), Bank AL Habib (BAHL), Pakistan State Oil (PSO), and Habib Bank Limited (HBL), which collectively dragged the index lower by 397 points. The brokerage further noted that market momentum remained intact despite the correction, underpinned by healthy participation.

Trading activity, though lower than the previous session, remained robust. Total market turnover clocked in at 905 million shares, compared to 1.2 billion shares a day earlier. The traded value also moderated to Rs 30.53 billion, down from Rs 42.02 billion, reflecting selective participation by investors. Market capitalization shrank to Rs 16.088 trillion, down from Rs 16.127 trillion in the previous session, as approximately Rs 39 billion was wiped out from investor holdings.

TPL Properties (TPLP) led the volume charts with a turnover of 65.9 million shares, albeit closing marginally lower at Rs 10.68. Kohinoor Spinning (KOSM) followed closely with 62.4 million shares, settling at Rs 6.65. PIA Holding Company also remained in focus, witnessing a turnover of 39.7 million shares and closing at Rs 23.23 from its previous close.

In terms of price performance, notable gainers in the ready market included PIA Holding Company Limited B, which surged by Rs 1,964.91 to Rs 21,614.00, and Unilever Pakistan Foods, which advanced by Rs 249.85 to Rs 23,488.49. Conversely, Hoechst Pakistan Limited led the laggards, shedding Rs 96.45 to Rs 3,350.63, while Pakistan Services Limited lost Rs 44.28 to close at Rs 833.57.

Market breadth remained negative, with 254 companies closing lower, 200 advancing, and 24 remaining unchanged out of a total of 478 active companies in the ready market.

Among sectoral indices, the BR Automobile Assembler Index settled at 21,596.73 points, recording a decline of 129.76 points or 0.6 percent, with a total turnover of 3.48 million shares. The BR Cement Index ended the session at 10,687.74 points, down by 30.17 points or 0.28 percent, with 51.22 million shares traded.

Similarly, the BR Commercial Banks Index closed lower at 38,167.67 points, posting a loss of 200.88 points or 0.52 percent, on a traded volume of 46.29 million shares. The BR Power Generation and Distribution Index finished at 20,998.86 points, slipping 29.13 points or 0.14 percent, with a turnover of 33.90 million shares.

Meanwhile, the BR Oil and Gas Index declined by 77.7 points or 0.63 percent to close at 12,224.79 points, with total volume reaching 73.13 million shares. Lastly, the BR Technology & Communication Index dropped 23.18 points or 0.75 percent to settle at 3,059.97 points, leading the turnover charts among sectors with 77.49 million shares traded.

In his comments, Ahsan Mehanti of Arif Habib Corporation noted that stocks closed under pressure on institutional profit-taking in overbought scrips amid foreign outflows and weak global equities, driven by concerns over US import tariffs. He added that rupee instability and uncertainty surrounding the outcome of the Asian Development Bank’s serious concerns on FBR’s tax revenue compliance on widening the tax base played a catalytic role in triggering bearish activity at the PSX.