The Pakistan Stock Exchange (PSX) closed lower on Tuesday amid ongoing contract rollover pressure on investors. The KSE-100 index remained volatile, hitting the intra-day high of 149,453 points, before coming down significantly to close at 148,435, a decrease of 380.24 points, or 0.26%.
Analysts mentioned that concerns over a proposed hike in industrial gas tariffs, alongside geopolitical uncertainty, played a key role in bearish activity at the bourse.
Ahsan Mehanti of Arif Habib Corp commented that stocks closed lower, pressured by futures contract rollovers, sluggish global equities and falling international crude oil prices. A steady policy rate, concerns over a proposed hike in industrial gas tariffs and geopolitical uncertainty fuelled the negative close at the PSX, he said.
In its review, Topline Securities remarked that the KSE-100 index posted a decline of 380 points. The session was marked by notable intra-day volatility, with the index hitting the day's high at 149,453, reflecting the ongoing rollover pressure.
Gains in Fauji Fertiliser Co, Hub Power and Pakistan Oilfields collectively contributed 295 points to the index. However, the increase was offset by losses in Engro Holdings, Bank AL Habib, Meezan Bank, MCB Bank and HBL, which pulled the KSE-100 down by 549 points, Topline noted.
In its commentary, Arif Habib Limited (AHL) stated that the benchmark index faces an additional downside risk as it moves deeper into support levels. Some 43 shares rose while 57 fell on the KSE-100.
Fauji Fertiliser Co (+1.19%), Hub Power (+1.93%) and Pakistan Oilfields (+1.82%) contributed the most to index gains. On the flip side, Bank AL Habib (-5.08%), Engro Holdings (-1.18%) and Meezan Bank (-1.31%) were the biggest drags.
AHL mentioned that Pakistan secured external financing of $694.53 million in July from multiple sources, which was 12.8% lower than the previous month and 56.5% higher than the same month of last year.
The brokerage noted that the State Bank made a net purchase of $522 million in May, up $49 million from $473 million in the previous month. Total intervention since the SBP started publishing data in June 2024 stood at $7.75 billion. Additionally, Oil and Gas Development Company (-0.55%) received its second payment of Rs7.725 billion from the circular debt settlement plan.
"For the remaining week, we are watching for the KSE-100 to reverse from above the 147,500 level and resume an advance towards 151,200," AHL added.
JS Global analyst Muhammad Hasan Ather commented that the index closed down 380 points and remained volatile throughout the day, posting a high of 149,453 and low of 148,313. The pullback was driven by profit-taking amid rollover week dynamics and cautious investor sentiment, he said.
Overall trading volumes decreased to 665.4 million shares compared with Monday's tally of 693.3 million. Traded value rose to Rs31.5 billion compared to Rs26.3 billion in the previous session.
Shares of 479 companies were traded. Of these, 196 stocks closed higher, 256 dropped and 27 remained unchanged.
First Dawood Properties was the volume leader with trading in 40.2 million shares, falling one rupee to close at Rs7.43. It was followed by Kohinoor Spinning Mills with 33.8 million shares, losing Rs0.33 to close at Rs6.74 and Treet Corp with 33.1 million shares, gaining Rs0.18 to close at Rs24.84. Foreign investors sold shares worth Rs1.97 billion, the National Clearing Company reported.
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