PSX retreats as investors lock in profits

KSE-100 index gives up early gains, loses 165 points at close

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KARACHI:

After riding high on a wave of optimism in the previous session, the Pakistan Stock Exchange (PSX) reversed course on Wednesday as investors opted to lock in profits. The KSE-100 index slipped 165.26 points, or 0.12%, closing at 139,254.36.

Despite an early push that saw the index touch 140,202, selling pressure influenced trading through the remainder of the session, reflecting a cautious flip in sentiment.

Arif Habib Corp MD Ahsan Mehanti commented that stocks closed lower amid institutional profit-taking in overbought shares and concerns over delay in privatisation of ailing state-owned companies. "Rupee instability, rising inflation and worries about foreign outflows triggered bearish activity at the PSX," he said.

KTrade Securities wrote in its market wrap that the PSX witnessed a mixed session as investors opted to book profits at market highs, leading to a slight pullback in the benchmark index.

The index touched intra-day high of 140,202 before retreating on selling pressure. KTrade expected the mixed trend to persist, with heightened volatility due to futures rollover and the ongoing earnings season, which may keep sentiment cautious. Among key negative contributors were Engro Holdings, HBL, MCB Bank and Pakgen Power.

Arif Habib Limited (AHL) commented that the PSX failed to hold early gains above 140,200 and fell for the remainder of the session. Some 39 shares rose while 60 fell, with Bank AL Habib (+1.95%), Mari Petroleum (+1.04%) and Hub Power (+0.87%) being the key contributors to index gains. In contrast, Engro Holdings (-1.23%), Habib Bank (-1.23%) and Pakgen Power (-6.8%) were the biggest drags.

During the trading session, PIA Holding Company (-1.2%) saw pressure as the airline's buyer would be required to invest Rs70 billion over five years under the revised business plan. Pre-qualified bidders are set to begin site visits and expert sessions from next week, AHL said.

In addition, the State Bank of Pakistan's monetary policy announcement is scheduled for July 30. Among corporate announcements, Systems Ltd (+0.91%) was considering potential acquisition in the IT and IT-enabled services space. AHL expected the market outlook to remain positive, with focus still on 140,500 this week.

JS Global analyst Muhammad Hasan Ather said that stocks experienced a slight pullback, with the benchmark index closing down 165 points at 139,254. After Tuesday's rally, profit-taking emerged as investors reassessed the sustainability of the optimism.

Despite the initial momentum, profit-taking activities continued to dominate the market. Key sectors including banks and oil registered mild corrections. While near-term volatility is likely to persist, investor sentiment may improve if fiscal clarity emerges from the Federal Board of Revenue's negotiations with businessmen, Ather said.

Topline Securities, in its report, noted that the market traded within a range throughout the session, moving between intra-day high of 140,202 and intra-day low of 139,105 amid futures rollover-related pressure.

Key laggards included Enrgo Holdings, Habib Bank, Pakgen Power, MCB Bank and Meezan Bank, which collectively shaved 277 points off the index. In contrast, Bank AL Habib, Mari Petroleum and Hub Power offered some support by contributing 174 points, Topline mentioned.

Overall trading volumes increased to 656.6 million shares compared with Tuesday's tally of 629 million. Traded value stood at Rs32.1 billion. Shares of 483 companies were traded. Of these, 211 stocks closed higher, 243 fell and 29 remained unchanged.

WorldCall Telecom topped the volumes chart with trading in 55.4 million shares, rising Rs0.08 to close at Rs1.54. It was followed by Media Times with 38.4 million shares, up Rs0.6 to close at Rs3.67 and First Dawood Properties with 31.3 million shares, falling Rs0.89 to close at Rs6.75. Foreign investors sold shares worth Rs327.7 million, the National Clearing Company reported.