PSX ends flat despite hitting peak at 134k

KSE-100 index edges up 33 points as investors lock in profit at higher valuations

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KARACHI:

Pakistan Stock Exchange (PSX) shot up to a new peak above 134,000 points in intra-day trading on Tuesday, but it could not sustain the momentum and closed almost flat.

Investors offloaded their holdings to book profit at sharply higher valuations following a rapid surge of the market over the past few days, when it repeatedly touched new all-time highs.

In the morning, the bourse kicked off trading on a positive note, however, it soon plunged to intra-day low of 132,696. The benchmark KSE-100 index recovered and continued to fluctuate frequently till midday.

Afterwards, the market began a gradual ascent, surging to intra-day high of 134,200. Before the end of trading, investors resorted to profit-taking, which wiped off most of the day's gains. However, it still stood at an all-time high.

According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher ahead of major earnings' announcements next week due to receding fears of US trade tariffs as well as a 7.22% year-on-year surge in textile exports in FY25.

Additionally, reports of a sharp decline in credit default swap (CDS), indicating lower default risks, along with higher US tariffs on competing exporters and rupee stability, played the role of catalysts in the new record close at the PSX, he stated.

At the close of trading, the KSE-100 index recorded an increase of 33.04 points, or 0.02%, and settled at 133,403.19.

In its review, Topline Securities noted that the local bourse blew hot and cold in Tuesday's trading session, swinging between extremes before settling almost flat. The KSE-100 index touched intra-day high of 830 points and low of 673 points, ultimately closing at 133,403, up a modest 33 points.

After a strong streak of consecutive gains, the market paused for breath, with sector-wise profit-booking taking centre stage. Investors opted to lock in recent gains, leading to a mixed session that saw volatility across the board, it said.

On the leaders' board, Habib Metropolitan Bank, Askari Bank, Meezan Bank, Indus Motor and MCB Bank emerged as key drivers, collectively contributing 222 points to the index. However, the upward momentum was partially offset by selling pressure in Fauji Fertiliser Company, Systems Limited, Engro Fertilisers and Mari Petroleum, which dragged the index down by 173 points, Topline added.

In its report, Arif Habib Limited (AHL) commented that the PSX saw a flat session, despite rising above 134,000 earlier in the day.

Some 41 shares rose while 57 fell, with Habib Metropolitan Bank (+3.87%), Askari Bank (+6.16%) and Meezan Bank (+0.95%) contributing the most to index gains. On the flip side, Fauji Fertiliser Company (-0.52%), Systems Limited (-1.09%) and Engro Fertilisers (-0.91%) were the biggest drags, it said.

The brokerage house noted that the KSE-100 index was projected to deliver a 27.4% return in FY26. Earnings growth for the fiscal year is expected to be 14% excluding banks and exploration and production firms. However, the overall earnings expansion, including all sectors, is projected at approximately 9.2%. "Near-term index support now resides at 132,000 to 133,000, where upside is expected to resume," AHL added.

JS Global analyst Muhammad Hasan Ather said that the KSE-100 index experienced a volatile session, closing slightly higher by 33 points at 133,403. The market initially showed strength by surpassing the 134,000 mark, but encountered selling pressure that dragged it back.

With mixed results across sectors, the outlook remains positive and stability is expected due to improved economic conditions, he stated.

Overall trading volumes increased to 1.2 billion shares compared with Monday's tally of 919.9 million. The value of shares traded was Rs42 billion. Shares of 480 companies were traded. Of these, 217 stocks closed higher, 231 dropped and 32 remained unchanged.

TPL Properties was the volume leader with trading in 96.7 million shares, gaining Rs1 to close at Rs10.72. It was followed by WorldCall Telecom with 64.4 million shares, inching up Rs0.05 to close at Rs1.6 and Hascol Petroleum with 47.7 million shares, rising Rs0.84 to close at Rs11.33. Foreign investors sold shares worth Rs543 million, the National Clearing Company reported.