PSX seesaws as KSE-100 gains 1,000 points, then loses it all

KARACHI: The Pakistan Stock Exchange (PSX) opened Wednesday’s session on a strong note but soon turned volatile as the benchmark KSE-100 index swung sharply between gains and losses, unsettling investors after a buoyant rally in the previous session.

The benchmark index had closed Tuesday on a high at 165,493.58 points, notching a gain of 1,645.90 points or one percent. The rally was largely driven by upbeat investor sentiment following the Asian Development Bank’s positive outlook on Pakistan’s economic growth and ongoing structural reforms. Many traders entered Wednesday’s session expecting that momentum to carry forward.

Morning optimism turns shaky

At the opening bell on Wednesday, the KSE-100 index immediately picked up pace, adding 784 points to reach 166,277.87 within minutes. Volumes were modest at that point, with fewer than nine million shares traded around 9:32 AM. The bullish mood extended further, and by 9:50 AM the index had surged to 166,522.61 points, gaining more than 1,029 points as turnover ballooned past 126 million shares.

That early thrust suggested another strong session was in the making, especially as the market tested fresh highs close to its 52-week peak of 166,556 points. However, the optimism did not last long.

Sudden reversal stuns investors

Barely 25 minutes later, at around 10:14 AM, the market made a startling U-turn. The KSE-100 gave up its gains and slipped into negative territory, plunging by 604 points to 164,889.27. The move came as volumes swelled to 195 million shares, pointing towards heavy profit-taking after recent highs.

By that stage, the market had already chalked out its intraday range, recording a high of 166,522.61 and a low of 164,889.27 within the first hour of trade. The sharp reversal caught many traders off guard, especially as the market has been on a consistent upward trend for weeks.

Despite this dip, broader sentiment remains constructive, with the index still showing a 101.56 percent gain over the past year and more than 43 percent growth on a year-to-date basis.

Mixed performance across sectors

The day’s trade highlighted sharp divergences in individual stocks. On the gaining side, names such as FEM, IBLHL, ASLCPS, and SHEZ all posted double-digit percentage increases, with FEM up by nearly 11 percent and others climbing by close to 10 percent. Steel maker STL and DMC also saw impressive rallies, adding more than Rs100 each to their share price.

However, the losers’ list painted an entirely different picture. INKL was among the worst hit, shedding nearly 10 percent. IDSM, DMTM, and AKDSL also faced steep cuts of 7 to 9 percent. Even big names such as Saif, FHAM, and PRWM endured declines of more than 7 percent, suggesting heavy profit-taking across sectors.

Banks and cement weigh on the index

Several blue-chip counters that had fuelled Tuesday’s rally were among those dragging the market lower on Wednesday morning. Bank stocks like HBL, BAFL, and FABL slipped between 2 and 3 percent, while DG Khan Cement fell nearly 3 percent. Energy names including Engro and UBL also lost ground, further adding pressure to the index.

Still, select stocks managed to stay in the green. Telecom operator PTC climbed more than 5 percent to trade at Rs30, while K-Electric gained close to 5 percent with heavy volumes of more than 100 million shares changing hands. Mari Petroleum advanced by nearly 2.5 percent and TRG Pakistan added over 1.5 percent, keeping investor interest alive in the energy and tech sectors.

Outlook remains cautious

Market watchers say Wednesday’s volatility reflects natural consolidation after an extended rally, with investors keen to lock in profits at record highs. Analysts also note that external economic factors, including global commodity price movements and the strength of the rupee, continue to play a role in shaping sentiment.

With the index still trading close to historic highs, traders are now watching whether the KSE-100 can regain upward momentum later in the day or whether the dip will deepen as the session progresses. For now, the market remains in a tug of war between bullish investors banking on economic optimism and cautious participants looking to secure recent gains.

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