PSX ends lower as profit-taking wipes out early gains

KARACHI: The Pakistan Stock Exchange closed lower on Friday, surrendering its early gains as profit-taking in major sectors weighed on investor sentiment at the end of the trading week.

The benchmark KSE-100 Index fell by 696 points, or 0.41 per cent, to settle at 170,478 points.

The market remained volatile throughout the session, with the index touching an intraday low of 170,254 points as investors sold shares to lock in profits following the recent rally.

Market participants attributed the decline to institutional selling and a cautious trading approach ahead of key macroeconomic developments.

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Analysts said broad-based selling pressure was witnessed across the market, particularly in heavyweight sectors that had posted significant gains over the past few weeks.

Trading activity remained concentrated in the cement, chemical, fertiliser, oil and gas, and commercial banking sectors, where institutional investors actively reshuffled their portfolios.

Despite the decline, overall market participation remained strong, although sentiment was affected by prevailing economic uncertainties and expectations surrounding upcoming fiscal policy announcements.

Traders believe the benchmark index may remain range-bound in the coming week as investors await fresh triggers, including developments related to the federal budget and potential foreign investment inflows.