The Pakistan Stock Exchange (PSX) closed modestly higher on Tuesday, driven by investor interest in selective stocks of banking, energy and cement sectors, as the KSE-100 index added nearly 400 points to close just shy of 158,000 mark.
The market remained in the positive territory, buoyed by hopes of settlement of circular debt in the power sector. However, profit-taking later in the day trimmed most of the gains. The index hit the intra-day high of 158,831 points after midday and later fell to the day's low at 157,417. It finished trading at 157,945.03, up 390.36 points, or 0.25%.
Overall sentiment remained positive as the index continued to hover near 158,000, a psychological level that has recently acted both as a resistance and support.
In corporate news, Oil and Gas Development Company (OGDC) reported a 19% year-on-year decline in earnings for FY25, posting a net profit of Rs169.9 billion with earnings per share (EPS) of Rs39.50, down from Rs208.9 billion (EPS Rs48.59) in the previous year.
The decline was largely attributed to weaker international oil prices and lower production volumes, both of which weighed on revenue.
KTrade Securities, in its market wrap, commented that the PSX witnessed another volatile session mainly due to futures rollover pressure and profit-taking. The KSE-100 index eventually registered an increase of 390 points to close at 157,945.
Key stocks contributing to the gains were UBL, Bestway Cement, Bank AL Habib, Mari Energies and Pakistan State Oil, while Lucky Cement, Meezan Bank and Habib Bank led the decline. Trading activity remained robust, with total volumes reaching 1.52 billion shares, KTrade added.
Arif Habib Limited (AHL) noted that gains on Tuesday lifted the KSE-100 by 0.25%, which continued to trade around the 158k level. Some 48 shares rose while 51 fell with UBL (+2.27%), Bestway Cement (+10%) and Bank AL Habib (+1.65%) contributing the most to the index.
On the other hand, Lucky Cement (-1.28%), Meezan Bank (-0.75%) and Habib Bank (-0.91%) pulled the index down. OGDC announced FY25 EPS of Rs39.50, down 19% year-on-year. Alongside the result, the company declared 4QFY25 dividend per share of Rs5, taking full-year payout to the highest-ever level of Rs15.05, it said.
Additionally, the government is expected to sign a financing agreement to help reduce its debt in the power sector, according to a ceremony invitation sent by the Central Power Purchasing Agency. Major banks including Habib Bank, Meezan Bank, United Bank, MCB Bank and Bank Alfalah are among 18 lenders invited to the ceremony. The government is likely to raise Rs1.25-1.75 trillion to pay part of the debt, AHL said.
JS Global analyst Mubashir Anis Naviwala remarked that the market witnessed another volatile session after commencement of trading with a bullish momentum. The KSE-100 index surged 1,276 points intra-day and tested the key resistance. However, it failed to sustain gains as profit-taking set in, wiping out much of the rally.
Despite volatility, the market managed to close at 157,945, up 390 points. He advised investors to stay cautious near resistance zones, with selective buying on dips.
Topline Securities stated that the bourse settled at 157,945, up 390 points, in a session marked by volatility due to futures rollover pressure. The benchmark index touched the intra-day high of 158,831 and the low of 157,417.
The rise in stocks of UBL, Bestway Cement and Bank AL Habib collectively added 432 points to the index while losses in Lucky Cement, Meezan Bank, HBL, Fauji Fertiliser Company and The Bank of Punjab erased 255 points, it added.
Overall trading volumes decreased to 1.52 billion shares compared with Monday's tally of 1.67 billion. The value of shares traded was Rs58.7 billion.
During the day, shares of 486 companies were traded. Of these, 195 stocks closed higher, 261 dropped and 30 remained unchanged.
K-Electric led the volumes chart with trading in 446.7 million shares, rising Rs0.20 to close at Rs6.31. It was followed by Pace Pakistan with 89.2 million shares, falling Rs1.15 to close at Rs10.36 and Cnergyico PK with 61.7 million shares, losing Rs0.04 to close at Rs8.50. Foreign investors sold shares worth Rs1.14 billion, the NCCPL reported.
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