RECORDER REPORT

KARACHI: The Pakistan Stock Exchange came under heavy selling pressure on Thursday, as profit-taking erased early gains and pulled the benchmark lower, ending an extended streak of record highs.

The KSE-100 Index closed at 149,235.26 points, down 1,355.74 points or 0.9 percent, compared with the previous day’s record of 150,591 points. During the session, the index touched a high of 151,249.63 points, however, sentiment quickly turned, and the benchmark slipped to a low of 148,272.58 points before stabilizing near the close.

BRIndex100 settled at 15,087.16, down 112.25 points or 0.74 percent, on a volume of 844.49 million shares, while BRIndex30 slipped 151.50 points or 0.35 percent to close at 42,872.74 points, with 533.94 million shares traded.

Analysts at Topline Securities described the session as one dominated by volatility, noting that profit-taking was the primary driver of the retreat. They observed that while select heavyweights such as The Searle Company, Oil and Gas Development Company, and Systems Limited contributed a positive 210 points, this support was more than offset by steep declines in key banks and conglomerates. Losses in Meezan Bank, Habib Bank, Engro Corporation, Bank Al Habib, and MCB Bank together shaved 636 points from the index, setting the tone for the downturn.

The market’s capitalization contracted by nearly Rs151 billion, slipping to Rs17.721 trillion from Rs17.872 trillion a day earlier. Out of 480 companies traded, 323 closed lower, 130 advanced, and 27 remained unchanged, underscoring a bearish market breadth.

Despite the index losses, trading activity surged. The ready market registered a turnover of 1.06 billion shares, substantially higher than the 668 million shares recorded in the previous session, while the traded value jumped to Rs55.8 billion from Rs40.7 billion.

Fauji Foods Limited emerged as the volume leader with more than 62 million shares changing hands, closing at Rs16.94. Pak Elektron followed with 57.22 million shares, ending the day at Rs45.36, while Telecard attracted strong investor interest with 56.93 million shares, settling at Rs8.34.

On the gainers’ chart, Service Industries Limited rose by Rs54.75 to close at Rs1,300.55, while Indus Motor Company added Rs52.76 to finish at Rs2,292.62. The losers’ table was led by Unilever Pakistan Foods, which plunged Rs883.72 to Rs31,511.11, while PIA Holding Company Limited (B) dropped Rs377.90 to Rs27,501.

The BR Automobile Assembler Index closed at 24,229.74 points, down 137.38 points or 0.56 percent on a turnover of 4.86 million shares. Cement stocks weakened further, dragging the BR Cement Index down 165.81 points or 1.33 percent to 12,282.96 with volumes of 45.31 million shares.

The BR Commercial Banks Index slumped 837.59 points or 1.82 percent to 45,140.65 points on heavy turnover of 107.34 million shares. BR Power Generation and Distribution index eased 16.23 points or 0.07 percent to 22,481.38 on 31.69 million shares, while Oil and Gas retreated 18.72 points or 0.15 percent to 12,804.71 with 48.45 million shares traded.

In contrast, BR Technology and Communications Index inching up 3.64 points or 0.11 percent to 3,381.17, leading all sectors in activity with 147.16 million shares.

Market observers viewed Thursday’s decline as a natural cooling-off period following a powerful rally that had carried the KSE-100 Index to historic highs earlier in the week.

However, Ahsan Mehanti of Arif Habib Corporation noted that the bearish close also reflected deeper concerns. He pointed out that flat government bond yields in the State Bank’s latest auction failed to ease inflationary expectations, while continued rupee instability added to investor unease.

He further highlighted that growing anxiety over external debt, mounting losses in state-owned enterprises, and uncertainty surrounding the IMF’s next review for the release of the third tranche under the Extended Fund Facility — particularly amid unmet provincial tax collection targets — also weighed heavily on sentiment.