Profit-taking grips bourse, KSE-100 sheds nearly 500 points
The trading session opened on a positive note, lifting the benchmark KSE-100 Index to an intra-day high of 147,892.25.
However, all intra-day gains were erased amid selling pressure, which pushed the index to an intra-day low of 146,417.80. The KSE-200 index eventually settled at 146,529.30, a decrease of 476.02 points or 0.32%.
The decline was 'mainly driven by profit-taking', Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.
In a key development, Moody's raised Pakistan's credit rating by one notch to 'Caa1' from 'Caa2,' citing Islamabad's improving external position.
Moody's assigned a stable outlook to Pakistan's rating.
'The recent credit rating upgrade from the global agency aligns with the view we shared with our clients in a publication at the beginning of the fiscal year, as one of nine key themes we identified as relevant for capital markets in FY26,' Amreen Soorani, Head of Research at JS Global, told Business Recorder.
'While the positive shifts in Pakistan's macroeconomic landscape that have led to the upgrade are encouraging, continued fiscal prudence, careful management of the external account, and a focus on sustainable growth will be crucial for further upgrades and sustained investor confidence,' she added.
On Tuesday, the PSX navigated a turbulent session, closing at a record high despite heavy profit-taking by investors keen to lock in recent gains.
The benchmark KSE-100 Index ended just 75.48 points, or 0.05% up, at 147,005.32 points.
Globally, stocks in Asia climbed and the US dollar was subdued on Wednesday, as data showed both resilience in major economies and the need for central banks to remain accommodative.
Wall Street scaled new heights on Tuesday, driven by increasing certainty that the Federal Reserve will cut interest rates next month. Japan's Nikkei broke through the 43,000 level for the first time, and cryptocurrency ether rose to an almost four-year high.
The highly anticipated US inflation readings indicated President Donald Trump's tariff regime had yet to filter down to consumer prices. In Japan, a report showed manufacturers grew more confident about business conditions after a trade agreement with the United States.
The MSCI All Country World Index of shares climbed for a second day to reach 948.54, a new all-time high. Japan's Nikkei stock index rose 1.4%, also setting a new peak for a second-straight session.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
PSX pauses below 147,000
The Pakistan Stock Exchange (PSX) closed the last trading session of the week on a muted note, with the benchmark KSE-100 index slipping 38 points, or 0.03%, to settle at 146,491. The market struggled to hold above the 147,000 mark as investors squared off positions ahead of the weekend. Sentiment remained mixed, with traders opting for a cautious stance while awaiting fresh triggers to guide the next market move, said Deputy Head of Trading at Arif Habib Ltd, Ali Najib. On the sectoral front, EFERT, LUCK, ENGROH, MEBL, and AIRLINK emerged as the major gainers, contributing a combined 512 points to the index. Their gains were offset by declines in OGDC, UBL, PPL, HUBC, and MARI, which collectively shaved off 499 points. Market Snapshot – August 15, 2025 Unlock today's market moves and stay one step ahead! — PSX (@pakstockexgltd) August 15, 2025 Trading activity slowed compared to the previous day, with 472 million shares changing hands, amounting to a turnover of Rs32.8 billion. ASL topped the volume charts with 30 million shares traded. The benchmark extended its winning streak to eight consecutive weeks, advancing 1,108 points, or 0.76%, over the period. Opening the week at 145,650, the index touched a high of 147,977 and a low of 145,259 before closing at 146,491. Analysts believe progress on circular debt resolution could sustain buying momentum, though a phase of consolidation or mild correction cannot be ruled out. Immediate support is seen at the 145,000 and 143,000 levels, while resistance remains at 148,000.
Business Recorder
3 hours ago
- Business Recorder
KSE-100 Index closes flat as selling erases intra-day gains
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 closed flat on Friday, as selling in the final hours erased the gains the index had made earlier during the day. The KSE-100 started the session positive, with investors rejoiced over Moody's Ratings' improvement in Pakistan's credit rating. It hit an intra-day high of 147,534.41. However, selling in the latter hours erased the intra-day gains and pushed the index into the negative territory. At close, the benchmark index settled at 146,491.63, marginally lower by 37.67 points or 0.03%. Top positive contribution to the index came from EFERT, LUCK, ENGROH, MEBL & AIRLINK, as they cumulatively contributed 512 points. On the other hand OGDC, UBL, PPL, HUBC and MARI lost value to weigh down on the index by 499 points, brokerage house Topline Securities said in its post-market report. Traded value wise AIRLINK, OGDC, PSO, LUCK, and NBP dominated the trading activity, it added. 'Investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark. The session's tone reflected a cautious approach ahead of the weekend, with traders balancing positions in anticipation of fresh cues for the market's next directional move,' Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said in a statement. On Wednesday, PSX experienced a session of mild profit-taking, as bears took control amid concerns over a surge in the trade deficit and unmet IMF conditions for provincial tax collection. The KSE-100 Index closed at 146,529.31 points, a decrease of 476.02 points or 0.32%. The stock market was closed on Thursday, i.e. 14th August, on account of a public holiday. Continuing its winning streak in a straight 8th week, the KSE-100 index gained 0.76% by adding 1,108 points. After opening at 145,650 the index touched a high of 147,977 and a low of 145,259 eventually closing the week at 146,491 level. An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan at the end of September, with the country expecting to receive the third tranche of $1 billion upon completion of the next review. Meanwhile, the State Bank of Pakistan (SBP), in its first-ever biannual Monetary Policy Report published on Wednesday, said that the return of stability in the domestic economy has promoted the country 'in a better position today to manage external shocks and domestic risks than it was two years ago'. The central bank said foreign investment inflows were projected to improve in the wake of the recent upgrade in the country's sovereign credit rating and the resultant decline in CDS (credit default swap) spreads. 'All these factors, combined with fresh liquidity moving from the debt market into equities, have contributed to the recent momentum,' Waqas Ghani, Head of Research, told Business Recorder. Globally, Asian stocks made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve's September meeting, while US bonds and equity futures stabilised. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics, which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists' expectations. The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group's FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago. Meanwhile, the Pakistani rupee continued to march upwards against the US dollar, appreciating 0.06% in the inter-bank market on Friday. At close, the currency settled at 282.06, a gain of Re0.16. Volume on the all-share index decreased to 473.60 million from 647.09 million recorded in the previous close. The value of shares declined to Rs32.88 billion from Rs40.89 billion in the previous session. Aisha Steel Mill was the volume leader with 30.03 million shares, followed by Media Times Ltd with 21.73 million shares, and Air Link Communication Limited with 18.88 million shares. Shares of 479 companies were traded on Friday, of which 226 registered an increase, 219 recorded a fall, while 34 remained unchanged.
Business Recorder
6 hours ago
- Business Recorder
Pakistan, US vow to advance new trade agreement, boost trade & investment
Pakistan and the United States reaffirmed their commitment to deepen economic cooperation, with both sides agreeing to advance a new trade agreement aimed at expanding market access, boosting investment, and promoting collaboration in key sectors. The development came during a high-level meeting between Natalie Baker, Chargé d'Affaires of the Embassy of the USA, and Finance Minister Muhammad Aurangzeb on Friday at the Finance Division. Last month, the US administration imposed a 19% reciprocal tariff on a wide range of Pakistani goods, significantly lower than the initially proposed 29%, under an executive order signed by US President Donald Trump. Pakistan's revised tariff rate of 19% is lower than that of several regional economies, including India (50%), Bangladesh (20%), Vietnam (20%), and Sri Lanka (20%). During Friday's meeting, matters of mutual interest, including avenues for enhancing bilateral trade, commerce, and US investment in Pakistan, were discussed. The finance minister stated that Pakistan's economy had 'turned a corner,' noting that the recent upgrade by Moody's—aligning all three major international rating agencies in their assessment of Pakistan's economic performance—was clear evidence that the hard and necessary reforms undertaken by the government were yielding positive results. Moody's upgraded the Government of Pakistan's local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2. The rating agency also upgraded the rating for the senior unsecured MTN programme to (P)Caa1 from (P)Caa2. Aurangzeb highlighted that Pakistan's bold and much-needed tariff reforms aimed at liberalising trade and steering the country towards export-led growth. Aurangzeb thanked the United States for its continued economic and development support to Pakistan and recalled his recent visit to Washington, D.C., where he had engagements with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer to finalise the trade agreement between the two countries. The finance minister emphasised that the agreement would usher in a new era of economic collaboration—particularly in energy, mines and minerals, IT, cryptocurrency, and other sectors—while expanding market access, attracting investment, and fostering cooperation in areas of mutual interest. He expressed hope that the deal would lead to increased US investment in Pakistan's infrastructure, development projects, and digital and mining sectors, which were ready for tangible action and progress. Meanwhile, Natalie Baker said that the trade agreement presented a significant opportunity for both Pakistan and the US to expand bilateral trade. She noted that US companies were taking a keen interest in investment and entrepreneurial opportunities in Pakistan, particularly in supply chain, production, project management, energy, critical minerals, mining, and oil exploration, read the statement. The meeting concluded with both sides reaffirming their commitment to working closely together to advance these initiatives, ensuring mutually beneficial outcomes and further strengthening trade and economic cooperation between the two countries.
