On Monday, the Pakistan Stock Exchange’s benchmark KSE-100 Index experienced a notable decline of 1.40%, driven by a trend of profit-taking that has been evident in the market over the past week. This downward movement comes despite strong local macroeconomic indicators and a global drop in oil prices.
Selling pressure was particularly pronounced in sectors such as oil and gas marketing, exploration companies, cement, chemicals, commercial banks, and fertilizer. These sectors had previously benefited from the Pakistan Stock Exchange’s remarkable surge in recent weeks and months.
In the preceding week, the market had closed with the KSE-100 Index at 66,130.02, reflecting a net weekly loss of 93.61 points. The significant decline witnessed during Monday’s session is attributed to profit-taking, a foreseeable move as investors sought to capitalize on the previous market gains.
The market correction aligns with the overall strategy of investors, and the long-term stability of the market is supported by positive indicators reported by the State Bank of Pakistan. On Monday, the current account surplus for November 2023 was announced at $9 million, marking a substantial improvement compared to the same month in the previous year when a deficit of $157 million was recorded. This positive figure is a significant turnaround from June 2023 when a surplus of $520 million was last reported.
Despite the recent dip, the market’s resilience and the favorable economic indicators contribute to a broader narrative of stability and growth in the Pakistani stock market. Investors are navigating market fluctuations, balancing profit-taking strategies with the overall positive economic landscape.
