PSX faces decline amid profit-taking

Pakistan Stock Exchange (PSX) on Tuesday faced significant volatility as the benchmark KSE-100 index dropped 1,510 points, or 1.33%. Analysts attributed the bearish sentiment to profit-taking amid pressure from the approaching rollover of futures contracts and uncertainty surrounding the outcome of ongoing talks between the government and Pakistan Tehreek-e-Insaf (PTI). The index initially surged by 1,112 points, reflecting early optimism, but later plunged by 1,629 points, driven by profit-taking and concerns over leverage positions and borrowing costs. The cautious market behaviour was also influenced by the approaching end-of-year contract deadline, which added to the pressure on investors. Despite the decline, there was active trading with a volume of 881 million shares and a value of Rs54 billion. Ahsan Mehanti of Arif Habib Corp commented that profit-taking was witnessed at the PSX amid pressure from futures contracts rollover and uncertainty about the outcome of patch-up talks between the government and PTI.