PSX ends two-day rally on profit-taking
The Pakistan Stock Exchange (PSX) ended lower on Wednesday, snapping a two-day winning streak, as the benchmark KSE-100 index fell around 750 points on the back of profit-taking at higher levels.
Despite the early momentum that pushed the index above 117,424, late-session selling, particularly in large-cap exploration and production (E&P) stocks, reversed gains. The market also failed to recover the "Monday Tariff Gap," signalling a bearish near-term bias.
Among active stocks on the index, 25 advanced while 71 declined. UBL (+0.87%) stood out, reporting a 125% year-on-year (YoY) jump in 1QCY25 earnings per share (EPS) to Rs29.34 along with a dividend of Rs11 and a two-for-one stock split.
"Stocks closed sharply lower in the earnings season amid 3.5% contraction in large-scale manufacturing (LSM) growth for February 2025 and investor fears over the outcome of US-China tariff war," said Ahsan Mehanti of Arif Habib Corporation.
"Rupee instability and the dismal data of cement sales for March played the role of catalysts in bearish close at the PSX," he added.
At the end of trading, the benchmark KSE-100 index posted a decline of 755.40 points, or 0.65%, and settled at 116,020.11.
Arif Habib Limited (AHL), in its report, wrote that the market failed to recover the "Monday Tariff Gap" and witnessed a downside displacement, reflecting a bearish near-term bias.
Key gainers included UBL (+0.87%), Engro Fertilisers (+1.28%) and MCB Bank (+0.94%) while Mari Petroleum (-2.51%), Pakistan Petroleum (-1.75%) and PSO (-2.43%) were the major drags on the index, it said.
UBL reported strong 1QCY25 results with EPS of Rs29.34 (+125% YoY) and a dividend per share of Rs11. It also announced a two-for-one stock split. The performance was driven by a 200% YoY rise in net interest income and a Rs1.6 billion provisioning reversal.
Meanwhile, AHL said, Pakistan planned to boost imports of cotton and soybean from the US in an effort to reduce its trade surplus and avoid potential US tariffs. "Technicals show a downside move from the key gap zone (117.6k118.6k), with the high-on-day at 117.4k, reinforcing the bearish outlook."
Topline Securities reported that the bourse had a hot and cold session, which reflected a mix of optimism and caution among investors. The market opened on a strong footing, gaining 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage, it said.
The index slipped to the intra-day low of 999 points and closed at 116,020, down 755 points.
The volatility could be largely attributed to the ongoing trade tensions between the United States and China, which reignited concerns about global economic stability and impacted investor sentiment, Topline added.
JS Global analyst Muhammad Hasan Ather said that the KSE-100 index snapped the two-day winning streak to close lower at 116,020 (-0.65%).
Stocks carried the momentum in early trade to test levels above 117,424 on the benchmark index, however, late selling wiped out the gains, eventually dragging the market into the red, mainly led by large-cap E&P stocks.
Bank and cement stocks kept the excitement going as investors rode the market. With external accounts strengthening and a robust liquidity, the momentum was expected to remain strong, especially in banking and export-driven sectors, he added.
Overall trading volume was recorded at 481.8 million shares compared with the previous session's tally of 479.5 million. The value of shares traded during the day was Rs38.5 billion. Shares of 451 companies were traded in the ready market. Of these, 140 stocks closed higher, 260 declined and 51 remained unchanged.
Cnergyico PK led the volume chart with 35.6 million shares, losing Rs0.02 to close at Rs8.51. It was followed by The Bank of Punjab with 25.5 million shares, declining Rs0.06 to close at Rs11.11 and Fauji Foods with 25.3 million shares, gaining Rs0.10 to close at Rs15.91. During the day, foreign investors bought shares worth Rs222 million, according to the NCCPL.