Range-bound PSX steadies near 149,500

Blue-chip stocks lend support; KSE-100 posts modest 258-point rise

KARACHI:

The Pakistan Stock Exchange (PSX) closed Friday's session modestly higher as the benchmark KSE-100 index added nearly 260 points to settle just shy of 149,500.

The market traded in a wide range, hitting intra-day high of +1,230 points and low of -214 points. The recovery from Thursday's steep fall was fueled by renewed interest in blue-chip stocks, though volatility is expected to persist in the near term amid profit-taking.

Activity was mixed as Fauji Fertiliser Company (FFC), NBP and Askari Bank led gains, while The Searle Company, Meezan Bank and Lucky Cement emerged as major drags. Traded volumes stood at 802 million shares with a value of Rs40.5 billion.

"Stocks showed recovery as investors weighed strong Pak-China trade and economic ties amid CPEC talks," said Ahsan Mehanti, Managing Director of Arif Habib Corp. Surging forex reserves, government deliberations on resolving the circular debt issue and rupee stability drove the positive close at the PSX, he said.

At the end of trading, the benchmark KSE-100 index posted a rise of 257.80 points, or 0.17%, and settled at 149,493.06.

Arif Habib Limited (AHL) wrote that the PSX ended Friday's session on a comparatively flat note, though the benchmark KSE-100 index gained 2.05% week-on-week, touching the high of 151,200 points during the week.

In Friday's trade, 59 shares advanced while 41 declined, with FFC (+0.83%), NBP (+2.63%) and Askari Bank (+5.3%) driving the gains, while Searle (-10%), Meezan Bank (-1.1%) and Lucky Cement (-1.05%) weighed on the index, it said.

On the economic front, Pakistan finalised a deal to import 1.1 million tons of US soybean worth $500 million, which is expected to narrow the trade deficit by replacing imports from Brazil.

Meanwhile, Pakistan and China reaffirmed support for Gwadar Port's development and the Karakoram Highway realignment, while the Asian Development Bank announced a $410 million financing package to help develop the Reko Diq copper mine, one of the world's largest untapped deposits.

For the coming week, analysts see the upside potential capped at 151,200, with immediate support around the 148,000 level, AHL added.

A range-bound session was observed on Friday as the index traded between the intra-day high of +1,230 points and intra-day low of -214 points to finally close at 149,493 (+0.17%), noted Topline Securities in its market review.

The top positive contribution to the index came from FFC, NBP, Askari Bank, Oil and Gas Development Company and Pakistan State Oil, as they contributed 289 points. On the other hand, Searle, Meezan Bank, Engro Holdings, Lucky Cement and Engro Fertilisers lost value, pulling the index down by 289 points, Topline said.

Muhammad Hasan Ather of JS Global commented that the KSE-100 index closed the week in the green zone, gaining 258 points. The rebound comes after Thursday's steep decline, driven by panic selling. The recovery was fueled by renewed interest in blue-chip stocks, as investors took advantage of lower valuations, he said.

While the rally reflects improved sentiment, volatility may persist in the near term and profit-taking is also likely to continue. "Given the macroeconomic situation, I expect the market to remain range bound next week, with selective buying in fundamentally strong sectors," Ather added.

Overall trading volumes were recorded at 802 million shares compared with the previous session's tally of 1.06 billion. The value of shares traded during the day was Rs40.5 billion.

Shares of 479 companies were traded. Of these, 251 stocks closed higher, 199 dropped and 29 remained unchanged.

Unity Foods was the volume leader with trading in 64.1 million shares, gaining Rs0.68 to close at Rs29.36. It was followed by Pakistan International Bulk Terminal with 63.8 million shares, gaining Rs0.68 to close at Rs11.53 and Fauji Foods with 53.98 million shares, gaining Rs0.17 to close at Rs17.11.

During the day, foreign investors sold shares worth Rs454 million, the National Clearing Company reported.