PSX hovers near 158,000 mark as banking, cement stocks drive modest gains

KARACHI:

The Pakistan Stock Exchange edged higher, recovering some ground after a quiet start to the week a day earlier. Buying interest in banking and cement stocks provided the upward push, helping the index stay in positive territory, although losses in fertiliser and energy sectors trimmed some of the gains on Tuesday.

The benchmark index traded within a narrow band, hitting a low of 157,416.54 and a high of 158,831.22, before settling at 157,945.03 with a gain of 390.36 points or 0.25%.

Market volumes were recorded at 1.52 billion shares, reflecting active participation from investors. Overall sentiment remained positive as the benchmark index continued to hover near the 158,000 mark, a psychological level that has recently acted as both resistance and support.

In key corporate news, Oil and Gas Development Company (OGDC) announced its financial results for FY25. The company reported a 19% year-on-year (YoY) decline in earnings, posting a net profit of Rs169.9 billion with Earnings Per Share (EPS) of Rs39.50, down from Rs208.9 billion (EPS of Rs48.59) in the previous year.

The decline was largely attributed to weaker international oil prices and reduced production volumes, both of which weighed on revenue despite efforts to manage costs.

KTrade Securities mentioned in its market wrap that the PSX witnessed another volatile session on Tuesday mainly due to futures rollover pressure and profit-taking. The benchmark KSE-100 Index eventually rose by 390 points (+0.25%) to close at 157,945 points.

Key stocks contributing to the index gains included United Bank, Bestway Cement, Bank AL Habib, Mari Energies and Pakistan State Oil, while Lucky Cement, Meezan Bank, and Habib Bank led the downside.

Despite near-term consolidation pressures from rollover activity, the PSX continued to show resilience, supported by investor confidence in the country’s long-term economic prospects and improving corporate earning, KTrade added.

Arif Habib Limited (AHL) noted that gains on Tuesday lifted the KSE-100 by 0.25%, which continues to trade around the 158k level. Some 48 shares rose while 51 fell with United Bank (+2.27%), Bestway Cement (+10%) and Bank AL Habib (+1.65%) contributing the most to index gains.

On the other hand, Lucky Cement (-1.28%), Meezan Bank (-0.75%) and Habib Bank (-0.91%) weighed down the index. The OGDC announced FY25 EPS of Rs39.50, -19% YoY. Alongside the result, it announced 4QFY25 Dividend Per Share (DPS) of Rs5.00, taking full-year DPS to the highest-ever levels of Rs15.05, it said.

Meanwhile, the government of Pakistan is expected to sign a ‘financing facility agreement’ to help reduce its debt in the power sector, according to a ceremony invitation from the Central Power Purchasing Agency.

Major banks such as Habib Bank, Meezan Bank, United Bank, MCB Bank and Bank Alfalah are among 18 lenders invited to the signing ceremony. The government is expected to raise Rs1.25 trillion to Rs1.75 trillion to pay part of the debt. Continuing to hold 157k keeps downside risk at bay with resistance at 159.3k, AHL wrote.

Overall trading volumes decreased to 1.52 billion shares compared to Monday’s tally of 1.67 billion. The value of shares traded was Rs58.7 billion. K-Electric continued to lead the volumes chart with trading in 446.7 million shares, rising by Rs0.20 to close at Rs6.31