Late profit-taking wipes out gains at PSX

KSE-100 index edges up 8.01 points, settles at 78,801.43

KARACHI:

Pakistan Stock Exchange (PSX) saw continuous fluctuations on Friday as the KSE-100 index ended flat after experiencing some volatility.

The bourse came under pressure from the approaching end of corporate earnings season and futures rollover.

The index began the day on a positive note, reaching its intra-day peak of 79,173.94 after the first hour of trading. However, in the latter part of the session, bears took over, pulling the index below the 79,000 mark.

Though the market largely remained in the positive zone, some profit-taking was observed later, which dragged the index to the intra-day low of 78,760.03.

Key players in the pharma sector provided support, helping to keep the market stable. By the end of the day, the KSE-100 was virtually unchanged with a thin rise of eight points.

"Stocks closed flat amid pressure as the earnings season neared its end and due to futures rollover," said Ahsan Mehanti, MD of Arif Habib Corp.

"Earlier gains were wiped out by concerns over the surging power tariff, leading to industrial unit closures, and the falling rupee," he said. "Falling bond yields and record sales in the pharma sector, however, were catalysts for a positive close at the PSX." At the end of trading, the benchmark KSE-100 index edged up 8.01 points, or 0.01%, and settled at 78,801.43.

Topline Securities, in its report, noted that the KSE-100 largely traded in the positive zone. However, some profit-taking was observed in the closing hours and the index declined to end on a flat note at 78,801, up 0.01%.

Pharmaceutical sector was in the limelight where eight companies out of the 12 listed firms gained ground to close at their respective upper circuit, it said.

Investor interest in the sector could be attributed to a pharma conference where four companies participated to give investors an overview of the industry. Companies expected a double-digit growth in revenue following the deregulation of non-essential drug prices in April 2024. In addition, results announcement for June quarter by Haleon Pakistan and Glaxo spurred buying interest in the pharma sector as both companies posted a significant growth in earnings, Topline added.

Arif Habib Limited (AHL), in its review, noted that the KSE-100 saw a solid week, gaining 0.8% week-on-week and setting the stage for potential moves towards 80k next week.

United Bank Limited (+1.67%), Highnoon Laboratories (+9.95%) and Abbott Laboratories (+10%) were the biggest contributors to the index gains. On the flip side, Dawood Hercules (-3.2%), Lucky Cement (-1.38%) and Habib Metropolitan Bank (-2.88%) pulled the index down, it said. Strong earnings from pharmaceutical companies following price deregulation led to significant gains for several names, including Abbott Laboratories, AGP Limited, GlaxoSmithKline and Citi Pharma, AHL added.

JS Global analyst Mohammed Waqar Iqbal said that the stock market exhibited a range-bound activity with the KSE-100 fluctuating within a narrow band of 413 points, ultimately closing flat at 78,801.

Trading volumes were concentrated in small-cap stocks as Kohinoor Spinning Mills led the way with trading in 74 million shares, followed by K-Electric and PACE Pakistan.

"Looking ahead, consolidation is likely to continue, though any positive economic developments could lift market sentiment," the JS analyst said.

Overall trading volumes decreased to 682.4 million shares compared with Thursday's tally of 804.3 million. The value of shares traded during the day was Rs18.2 billion.

Shares of 451 companies were traded. Of these, 192 stocks closed higher, 199 fell and 60 remained unchanged.

Kohinoor Spinning Mills was the volume leader with trading in 81.7 million shares, losing Rs1.07 to close at Rs10.92. It was followed by K-Electric with 71.8 million shares, gaining Rs0.26 to close at Rs4.43 and Pace (Pakistan) with 36.7 million shares, gaining Rs0.45 to close at Rs4.15. Foreign investors were net sellers of shares worth Rs70.7 million, according to the NCCPL.