PSX notches thin gains in volatile trading

Index adds 147 points on institutional buying ahead of new earnings season

KARACHI:

It was a choppy day at the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 index moved in both directions before ending the session with thin gains of 147 points.

In the morning, the market started off trading on a strong note, touching the intra-day high of 166,523 points. However, it proved short-lived following news reports that the Asian Development Bank (ADB) had kept Pakistan's growth forecast unchanged at 3% and flagged delays in reforms.

Fresh disclosures to the IMF about a $1 billion hit to exports from recent floods as well as an uptick in inflation for September added to concerns. As a result, investors opted for profit-taking, dragging the index to the day's low of 164,155. The bourse managed to recover before close and settled at 165,640.34, up 146.75 points, or 0.09%.

Arif Habib Limited (AHL) observed that in a flat session on Wednesday, the KSE-100 index experienced an intra-day correction, sloping down to 164k before recovering.

A total of 40 shares rose while 60 fell, with Mari Energies (+4.85%), Meezan Bank (+2.26%) and Fatima Fertiliser (+10%) contributing the most to index gains. On the other hand, Engro Holdings (-1.7%), Hub Power (-1.85%) and HBL (-1.43%) were the biggest drags, it said.

Once again, AHL mentioned, traded volumes crossed one billion shares – only for the second time in the last two decades. Historically, volume spikes indicate distribution. Pakistan's inflation quickened in September and the Consumer Price Index registered a growth of 5.61% after a spike in food prices as monsoon rains and floods disrupted supply chains. "Upside draw for the remainder of the week is at 166.6k with support at 163.5k," AHL predicted.

KTrade Securities noted that the KSE-100 index closed at 165,640, gaining 147 points, where momentum was triggered by banking, fertiliser and energy names, while some pressure emerged in other key sectors.

Investor participation remained strong, with overall volumes reaching 1.64 billion shares. Sentiment was positive, lifted by the recent Pak-Saudi defence agreement, circular debt reduction plan for the energy sector and PM Sharif meeting with US President Trump.

JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index closed positive at 165,640 (+147 points day-on-day) despite selling pressure during early trading. The bourse got support from continued institutional buying ahead of the new earnings season.

"We maintain a positive outlook, expecting consolidation above 165,000 amid profit-taking, followed by another upward leg, driven by stable macros and geopolitical conditions," he said.

Topline Securities reported a tug of war in Wednesday's trading session as bulls and bears contested for dominance. The benchmark index surged to the intra-day high of 1,029 points, before selling pressure brought it down to the intra-day low of 1,338 points. Despite volatility, the market closed on a positive note with a modest gain of 147 points. Mari Energies, Meezan Bank, Fatima Fertiliser and The Bank of Punjab collectively contributed 694 points to the index, while Engro Holdings, Hub Power, HBL, Pakistan Petroleum and Bank AL Habib dragged it down by 481 points.

Overall, investors remained cautious amid range-bound activity and market direction was likely to hinge on economic developments and institutional flows, Topline added. Total trading volumes increased to 1.64 billion shares compared with Tuesday's tally of 1.35 billion. Traded value stood at Rs69.7 billion. The PSX announced on X that 64% of the total value of equity traded was in Shariah-compliant stocks.

During the day, shares of 486 companies were traded. Of these, 173 stocks closed higher, 287 dropped and 26 remained unchanged.

K-Electric was the volume leader with trading in 299.6 million shares, gaining Rs0.39 to close at Rs7.34. It was followed by The Bank of Punjab with 192 million shares, rising Rs2.65 to close at Rs29.80 and Pak Elektron with 132.4 million shares, up Rs2.63 to close at Rs59.31. Foreign investors bought shares worth Rs211.4 million, the National Clearing Company reported.