PSX cools from record rally, investors lock gains

The bourse shed momentum Thursday as earnings season wound down and investors sought to consolidate record gains.

“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 Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 149,235.26 points, down 1,355.74 points, or -0.9%, from the previous close of 150,591.00.

During the session, the index climbed to an intraday high of 151,249.62, gaining 658.62 points, or 0.44%, before retreating to a low of 148,272.57, reflecting a sharp drop of 2,318.43 points, or -1.54%.

The government raised Rs492 billion from the auction of market treasury bills on Wednesday, surpassing 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, while 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, narrowing 27% from $348 million in the same month last year, central bank data showed. The deficit followed a surplus of $335 million in June. Foreign exchange reserves held by the State Bank of Pakistan stood at $14.24 billion as of August 8.

On Wednesday, the benchmark KSE-100 Index surged by 820.26 points, or 0.55%, to close at 150,591 points from 149,770.75 in the prior session, marking the 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.