KARACHI:
Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Tuesday, mirroring global market trends amid escalation in geopolitical tensions in the Middle East. The KSE-100 index swung between the high of 666 points and low of 409 points, before closing down by 254 points at 121,971.
Investor sentiment remained fragile as concerns over the Israel-Iran conflict, a weakening rupee and the State Bank of Pakistan’s (SBP) decision to maintain its policy rate weighed on the market. The index saw early gains following the monetary policy announcement, but profit-taking set in towards the close of the session. Trading activity remained robust at 1.15 billion shares.
According to Ahsan Mehanti of Arif Habib Corp, stocks closed lower amid a global equity rout, driven by geopolitical uncertainty and the State Bank’s decision to leave the policy rate on hold due to the inflationary impact of the Israel-Iran conflict. He added that a weakening rupee, alongside rising imports, fuelled the negative close at the PSX.
At the end of trading, the benchmark KSE-100 index recorded a decrease of 254.32 points, or 0.21%, and settled at 121,971.04.
In its review, Topline Securities commented that the PSX witnessed a volatile session, closely tracking global market cues. The benchmark index oscillated within a wide range, touching the intra-day high of 666 points and low of 409 points, before settling at 121,971, down 254 points.
Amid growing geopolitical uncertainty surrounding tensions between Iran and Israel, investors opted to stay cautious, leading to a lack of clear direction throughout the session. Sentiment remained fragile as the market struggled to find a firm footing, it said.
On the upside, index heavyweights UBL, HBL, Systems Limited and OGDC provided support by contributing 219 points. However, losses in Pakgen Power, Lucky Cement, Engro Holdings and Hub Power offset gains, dragging the index down by 291 points, Topline added.
Arif Habib Limited Deputy Head of Trading Ali Najib remarked that the KSE-100 index posted a marginal decline of 0.21% day-on-day, closing just below the 122k mark at 121,971.
The session resumed on a positive note post Monday’s monetary policy committee announcement of “no change”. However, at the day’s high at 122,892, profit-taking kicked in, which pushed the index into negative territory. Due to the selling, the KSE-100 broke the 122k level, he noted.
On the macro front, high-level tariff negotiations were held between Pakistan and the United States, with both sides expressing the commitment to expediting a trade agreement. Moreover, the external account saw pressure in May with a current account deficit of $103 million, in contrast to a $47 million surplus in April, Najib added.
JS Global analyst Mubashir Anis Naviwala said that the market opened on a positive note, quickly touching the high of 122,891 in early hours of trading. However, profit-taking pressure erased all gains, pulling the index into the red.
Trading was dominated by small-cap stocks, which reflected speculative short-term interest, he said. “The broader trend remains uncertain, with investors exercising caution ahead of key developments. We advise them to maintain a defensive approach and avoid aggressive exposure for now,” the analyst added.
Overall trading volumes decreased to 1.15 billion shares compared with Monday’s tally of 1.22 billion. The value of shares traded was Rs28 billion. Shares of 473 companies were traded. Of these, 193 stocks closed higher, 244 fell and 36 remained unchanged.
WorldCall Telecom was the volume leader with trading in 239.8 million shares, inching down one paisa to close at Rs1.61. It was followed by Pervez Ahmed Consultancy with 97.5 million shares, falling Rs0.05 to close at Rs3.88 and Sui Southern Gas Company with 49.9 million shares, gaining Rs1.54 to close at Rs44.82. Foreign investors bought shares worth Rs28.1 million, the National Clearing Company reported.
