Profit-taking continued at the Pakistan Stock Exchange (PSX) for the second consecutive day on Thursday, which brought major sectors under selling pressure, dragging the benchmark KSE-100 index down by nearly 900 points.

Following an initial spike to the intra-day peak of 170,301, the market took a dive early in the day and registered a notable decline before midday. Thereafter, the bourse steadied for a significant time, but it again dropped, touching the intra-day low of 168,548 just before close.

Investors resorted to profit-booking at higher valuations, despite the settlement of power-sector debt worth Rs660 billion in the largest-ever transaction in Pakistan's capital market. The index crossed the 170k milestone for the second day in a row, however, it could not stay above that level for long.

At close, the KSE-100 recorded a fall of 877.17, or 0.52%, to settle at 168,574.69. "The market took a breather as profit-taking emerged near the 170k milestone," commented Topline Securities in its daily report.

It said that the local bourse witnessed a measured round of profit-booking when the benchmark index approached the key psychological barrier of 170,000. The market swung between the intra-day high of 849 points and low of 903 points before settling at 168,575, down 877 points, signalling a cautious pause after its recent strong run.

On the news front, Topline mentioned, sentiment was underpinned by a landmark development. On Wednesday, Pakistan successfully completed a Rs659.6 billion settlement of Power Holding Limited (PHL) debt, the largest-ever transaction in the country's capital market. "This historic move is expected to enhance fiscal stability and improve confidence across financial circles."

Stock-specific activity painted a mixed picture. Engro Holdings, Nishat Mills, OGDC, Kapco and Adamjee Insurance collectively added 319 points to the index. However, the strength was offset by weakness in Fauji Fertiliser Company, Lucky Cement, HBL and Pakistan Services, which dragged the index down by 566 points. Investor interest remained robust, with total traded volumes soaring to 1,289 million shares, Topline added.

Mubashir Anis Naviwala of JS Global observed that the KSE-100 ended in the red with a fall of 877 points at 168,575. "The market opened weak and continued to decline through most of the session. Intra-day range remained narrow with volatility around the 169k zone," he said.

Despite the fall, overall activity stayed high as 1,289 million shares were traded. Profit-taking dominated after the recent all-time high of 170,697 and selling pressure persisted across major sectors throughout the day. "The market may remain choppy near current levels; dips could offer selective entries," he added.

Overall trading volumes increased to 1.3 billion shares compared to the previous tally of 1.2 billion. The value of traded shares stood at Rs55.2 billion.

On the ready market, shares of 486 companies were traded. Of these, 190 closed higher, 257 dipped and 39 remained unchanged.

Hum Network was the volume leader with trading in 188 million shares, rising Rs0.68 to close at Rs14.65. It was followed by Pakgen Power with 180.1 million shares, shedding Rs4.10 to close at Rs58.92 and TPL Properties with 110 million shares, gaining Rs0.45 to close at Rs12.91. Foreign investors were net sellers of shares worth Rs3.9 billion, the National Clearing Company reported.