Pakistan Stock Exchange (PSX) closed flat on Friday as investors remained cautious amid ongoing uncertainty about the Israel-Iran conflict.
After opening on a positive note, driven by reports that the Trump administration may delay its decision on taking action in the Middle East by two weeks, the benchmark KSE-100 index touched the intra-day high of 120,829 points. However, it later succumbed to profit-taking, settling marginally higher by 21 points at 120,023. Key support at the 120k level held firm throughout the week despite volatile sessions.
"Stocks closed lower on fears of an escalation in Middle East tensions," said Ahsan Mehanti, Managing Director of Arif Habib Corp. Weak rupee and a slump in global equities fuelled panic selling at the PSX, he said.
At the end of trading, the benchmark KSE-100 index posted a slight gain of 20.65 points, or 0.02%, and settled at 120,023.24.
Topline Securities, in its review, wrote that the KSE-100 index, after opening on a positive note, traded in the positive zone for most part of the session on news that the Trump administration had decided to exercise restraint and would decide on US action in the Israel-Iran conflict within two weeks. However, due to the lack of confidence, the index came down during latter hours to close flat at 120,023, up 0.02%.
Top positive contribution to the index came from Hub Power, Systems Limited, UBL, OGDC, Maple Leaf Cement and Pakistan Petroleum as they cumulatively added 168 points. On the flip side, top negative contributors were Pakgen Power, TRG Pakistan, Fauji Fertiliser Company, Pakistan Services, Engro Fertilisers and MCB Bank, which erased 180 points from the index, Topline said.
"It was another volatile session that ended with thin change," noted Ali Najib, Deputy Head of Trading at Arif Habib Limited, as the benchmark index closed marginally higher at 120,023 (+21 points). It is pertinent to note that the 120k level has so far proved to be a saviour throughout the week.
He pointed out that the market opened on a positive note, driven by media reports suggesting a possible de-escalation in the Israel-Iran conflict. However, profit-taking in the final hour, ahead of the weekend, erased early gains as short-term investors squared off their positions, Najib added.
Mubashir Anis Naviwala of JS Global commented that the market started the session on a weak note, with sentiment remaining cautious throughout the day. After touching the intra-day high of 120,829, the index dropped to the low of 119,872 amid profit-taking.
However, the positive takeaway was that the index managed to close above the 120,000 psychological mark, he said.
Overall trading volumes were recorded at 421.6 million shares compared with the previous tally of 604.5 million. The value of shares traded was Rs15.7 billion. Shares of 468 companies were traded. Of these, 178 stocks closed higher, 245 fell and 45 remained unchanged.
WorldCall Telecom was the volume leader with trading in 42.8 million shares, losing Rs0.04 to close at Rs1.45. It was followed by TRG Pakistan with 26.7 million shares, losing Rs5.12 to close at Rs56.68 and Pervez Ahmed Consultancy with 25.5 million shares, losing Rs0.25 to close at Rs2.84. During the day, foreign investors sold shares worth Rs69.3 million, according to the NCCPL.
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