PSX tags 120k before closing in the red

KSE-100 index dips 146 points as investors lock in profits

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KARACHI:

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) briefly touched the 120,000 mark during intra-day trading, reaching a key upside target before settling around 118,800, down 146 points.

The market opened on a positive note, fueled by optimism about the government's decision to cut electricity tariffs by 12-17% and assurances from the prime minister of resolving the circular debt crisis within five years. However, profit-taking ahead of the weekend led to a late-session decline.

"Stocks closed under pressure amid a record fall in global equities on recession fears and Trump tariff worries," said Arif Habib Corp MD Ahsan Mehanti.

The slump in global crude oil prices, worries over the outcome of US tariffs on Pakistan's exports, a higher Kibor, and rupee instability played the role of catalysts in the bearish close.

At the end of trading, the KSE-100 index registered a decline of 146.45 points, or 0.12%, and settled at 118,791.66.

Arif Habib Limited (AHL) wrote that the KSE-100 index briefly tagged the 120,000 level in intra-day trading, fulfilling the minimum requirement for a complete upside structure, and settled at its current price objective.

While further upside remained possible, a decline below the 116,000-117,000 range could serve as an early warning of a potential top forming in the market, it said.

For the day, 63 stocks closed lower while 34 advanced. The key contributors to the index gains were UBL (+8.45%), Meezan Bank (+3.46%), and MCB Bank (+2.97%). On the flip side, OGDC (-3.37%), Hubco (-3.12%), and Mari Petroleum (-2.53%) were the biggest drags.

In a notable corporate development, Bank Alfalah notified the bourse that it would no longer proceed with the proposed sale of its Bangladesh operations to Hatton National Bank, AHL added.

Topline Securities, in its market review, said that despite pressure in regional and international markets, the KSE-100 index opened on a positive note and rose to the intra-day high of 1,859 points (or 1.56%).

The optimism could be attributed to the government's announcement of a reduction in electricity tariffs by 12-17% for domestic consumers and industries and the prime minister's statement that the government intended to do away with the circular debt in the next five years, it said.

However, during the closing hours of trade, jittery investors came in to book profit before weekend as the index dipped to close at 118,792 (down 0.12%).

Topline pointed out that investor interest was observed in the banking sector as the top positive contribution came from UBL, Meezan Bank, MCB Bank, HBL and Bank AL Habib, which contributed 1,020 points to the index. On the other hand, the major negative contribution was made by Engro Holdings, OGDC, Hubco, Mari Petroleum and Pakistan Petroleum, as they wiped off 778 points from the index.

Muhammad Hasan Ather of JS Global commented that the KSE-100 index surged by 1.6%, crossing the historic 120,000-point milestone during intra-day trading, driven by investor optimism following an 18% electricity tariff cut and the easing of inflation.

However, it closed at 118,792, down 146 points, as global trade tensions and tariff disputes weighed on sentiment. Banking sector shares saw increased buying interest, while oil and gas stocks faced selling pressure, he said.

Overall trading volumes were recorded at 553.7 million shares compared with Thursday's tally of 422.7 million. The value of shares traded during the day was Rs35.5 billion.

Shares of 457 companies were traded. Of these, 151 stocks closed higher, 258 fell, and 48 remained unchanged.

Cnergyico PK was the volume leader with trading in 61.3 million shares, gaining Rs0.12 to close at Rs8.29. It was followed by Bank Alfalah with 43.5 million shares, losing Rs0.11 to close at Rs74.37, and The Bank of Punjab with 21.8 million shares, losing Rs0.04 to close at Rs11.01. During the day, foreign investors bought shares worth Rs2.3 billion, according to the NCCPL.