Shares at PSX lose another 245 points on profit-taking

Bears continued to weigh on the Pakistan Stock Exchange (PSX) on Thursday as the benchmark index extended losses for a fourth consecutive session this week.

According to the PSX website, the KSE-100 index declined by 513.19 points at 2:30pm to stand at 61,934.82, down 0.82 per cent from the previous close of 62,448.01 points.

The index limped to recovery and managed to close at 62,693.56 points, down by 245.55 points or 0.39pc from Wednesday’s close.

On Tuesday, the benchmark of representative shares posted the second-biggest overnight fall in its 32-year history. Analysts had attributed the losses to continuous profit-taking and deleveraging of equity positions by investors ahead of the end of the calendar year.

Speaking to Dawn.com today, Shahbaz Ashraf, chief investment officer at FRIM Ventures, said the market was in red due to investors squaring their future positions coupled with selling from mutual funds to book profits.

Sana Tawfik, deputy head of research at Arif Habib, said the market’s profit-taking and correction phase was continuing.

“What we are looking at is correction which was overdue. The index was trading in the positive zone for a few weeks and months and there comes a point where those who have bought will want to realise their profits and therefore they will sell,” she explained.

“Secondly, the financing rate — the leverage financing — is also high. There are talks of 30pc plus. So a number of factors contributed to a negative sentiment,” Tawfik added.

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