PSX declines amid profit-taking ahead of rollover week

The equity market remained under pressure on Friday as investors continued to book profits following a series of strong sessions, while disappointing results weighed on sentiment ahead of the rollover week.

During the session, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index climbed to an intraday high of 165,025.85 points, up 435.44 points, or 0.26%, from the previous close of 164,590.41 points, and retreated to a low of 163,041.97 points, reflecting a decline of 1,548.44 points, or -0.94%.

Investor sentiment was weighed down by state-owned enterprises' (SOE) losses, coupled with weak oil and global equities, with caution compounded by worries over a potential US government shutdown and tariff risks.

“Profit taking and some results have been lower than expectations,” said Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company.

The decline came after a volatile week dominated by cautious sentiment, as investors assessed recent earnings reports and shifting macroeconomic indicators. 

Profit-booking in the banking and energy sectors led the broader market lower, with participants opting to secure gains from the recent rally.

“Stocks under pressure amid economic uncertainty, SOEs' losses. Surging inflation, flood losses impacted the sentiments, said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"Weak global crude oil prices and weak global equities amid fears over the outcome of the US Govt shutdown, US tariffs played a catalyst role in bearish activity at PSX,” he added.

Meanwhile, the State Bank of Pakistan (SBP) said on Thursday that the country’s foreign exchange reserves increased by $14 million to $14.46 billion during the week ending October 17. 

Total liquid foreign reserves rose by $43 million to $19.854 billion, while reserves of commercial banks also increased by $29 million to $5.398 billion. The SBP attributed the steady rise to strong remittances, improved current account performance, and continued dollar purchases from the interbank market.

On Thursday, the KSE-100 Index declined sharply by 1,962.87 points, or 1.18%, to close at 164,590.41 points from 166,553.28 points recorded in the previous session. The day’s high and low stood at 166,720.42 points and 164,395.39 points, respectively.