Profit taking grips PSX after early record-breaking rally

Following exchanges with the International Monetary Fund (IMF) and the cessation of hostilities by India, the Pakistan Stock Exchange (PSX) continued its upward trend to cross 120,000 points during intraday trading. Reports have confirmed that surging investor confidence allowed the exchange to reach its highest point in history on Monday, setting a new record.

The KSE-100, the benchmark index of the PSX, reached an intraday high of 120,285.54 points. The index peaked at 9:33 AM after which significant profit taking took hold of the market, causing the market to close at a lower, yet respectable, 119,649.14 points.

For reference, the KSE-100 closed at 119,689.63 points on Friday, after which the index recorded a growth of 0.03 percent during trading hours on Monday, allowing for a 40.49 point rise. The market displayed a slowdown around 11:37 PM as the KSE-100 hit its intraday trading low of 119,250.67 points before recording a recovery to close the day marginally higher than when trading hours started.

Of the 17 indexes listed on the exchange, 7 remained in the green with the All-share index (ALLSHR) being in the red, shrinking by 0.03 percent, which translates into a 20.99 point loss for the index. Unlike the KSE-100, which tracks the performance of the 100 largest and most liquid companies, the ALLSHR index records the performance of all publicly listed companies on the PSX.

A number of companies witnessed a rise in share prices, with First Paramount Modaraba (FPRM) and Dost Steels Limited (DSL) winning big, to the tune of growth rates that sat at 12.08 percent (FPRM) and 11.99 percent (DSL).

However, not every publicly listed stock witnessed an improvement as many companies witnessed sharp declines. Of these declining companies, the one that fared the worst during intra-day trading was J.K. Spinning Mills Limited (JKSM) which posted a 16.85 percent decline in its position.

Analysts have pegged the boom in the KSE-100 to the Pak-India ceasefire, outlining how the index witnessed a staggering 12,474-point rally in the last week to settle just under 120,000 points. Moreover, the IMF has given its green light to the first review of the country’s loan program along with the approval of a climate fund, reportedly resulting in the disbursement of $1 billion.

Analysts have reportedly projected that the KSE-100 index could cross 165,000 points by December 2025, owing to a drop in interest rates and an improved state of the wider economy. These factors are responsible for creating a business-friendly environment, lending weight to analysts’ claims.