PSX Falls Below 180,000 Points

The Pakistan Stock Exchange (PSX) stayed around the 180,000-point level on Wednesday. An early rally pushed the benchmark KSE-100 index to an intraday high of 180,769. However, profit-taking in heavyweight stocks erased the gains and dragged the index more than 250 points lower to around 179,880.

Market Opens Positive Then Retreats

The market opened on a positive note, extending the previous session's bullish momentum. It reached an intraday high of 180,769, up 1,434 points or 0.80 percent. This was a level last seen on August 18.

However, the upward momentum did not last as profit-taking emerged around the 180,000 level. The index later retreated before staging a partial recovery. Selling pressure increased towards the close, said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.

Cement Stocks Gain on Royalty Case Hope

On the sectoral front, cement stocks extended their gains. This happened amid optimism surrounding the Punjab cement royalty case. The Federal Constitutional Court is expected to announce its verdict next week.

"The street is expecting a favourable outcome for cement manufacturers," he added.

Corporate News: Thatta Cement and Fauji Foundation

On the corporate front, Thatta Cement, up 5.2 percent, informed the PSX that it had entered into a definitive agreement with Fauji Foundation for the restructuring of PSEL.

Top Contributors and Losers

From the index contribution perspective, PSO, PSEL, EFERT, FABL and SYS emerged as the top five positive contributors. They collectively added approximately 290 points.

Conversely, UBL, MEBL, LUCK, NBP and FCCL collectively eroded 428 points from the benchmark index. This reflected profit-taking in key heavyweights.

Market Activity and Volume

Market activity remained robust. Trading volume reached 1.24 billion shares and total traded value amounted to Rs41.7 billion. WTL led the volume chart with 231 million shares traded.

Market Outlook

Going forward, the market may maintain its positive bias. This is supported by improving investor sentiment and continued strength in cement stocks amid expectations of a favourable royalty verdict.

However, profit-taking near the 180,000 level may trigger intermittent volatility. Selective buying is likely to remain the preferred strategy.