KARACHI: The stock market failed to sustain its record gains on Wednesday, retreating into the red as profit-taking and concerns over the delayed privatisation of state-owned enterprises (SOEs) weighed on investor sentiment.

The KSE-100 index closed at 139,254.36, down 165.26 points or 0.12pc, after hitting an intraday high of 140,202.18 and a low of 139,105.05. The index remained rangebound throughout the session, primarily due to rollover-related pressure and institutional selling at elevated levels.

Ahsan Mehanti of Arif Habib Corporation attributed the bearish close to profit-taking in overbought scrips and uncertainty surrounding the privatisation of loss-making SOEs. He said rupee volatility, rising inflation, and concerns over potential foreign out-flows further dampened market sentiment.

Topline Securities noted that major drag came from Engro Holdings, Habib Bank, Packages Ltd, MCB Bank, and Meezan Bank, whichcollectively knocked off 277 points from the index.

However, some support came from Bank Al Habib, Mari Petroleum, and Hub Power, which together added 174 points.

Ali Najib, Deputy Headof Trading at Arif Habib Ltd, said the market continued consolidating around the key psychological barrier of 140,000 points. He noted that earlier optimism was driven by a meeting betweenArmy Chief Field Marshal Asim Munir and members of the business community, during which the COAS assured full support for economic revival and directed the FBR to engage with stakeholderson controversial arrest provisions under Sections 37A and 37B of the Sales Tax Act.

This assurance spurred selective buying in key sectors, including automobiles, banks, exploration and production (E&Ps), oil marketing companies (OMCs), power, and refineries particularly in index-heavy stocks.

Investor sentiment was also influenced by the upcoming meeting of the Monetary Policy Committee, scheduled for July 30. Market participants widely expect a 50-100 basis points cut in the policy rate, which could act as a fresh trigger for equities.

Market participation remained relatively subdued. Total volume increased by 4.38pc to 656.64 million shares, while traded value declined by 7.43pc to Rs32.09bn. WorldCall Telecom led the volumes chart, with 55.41 million shares changing hands.