PSX rises modestly amid profit-taking

The Pakistan Stock Exchange (PSX) witnessed consolidation of positions on Wednesday as it closed modestly higher by 210 points due to profit-taking and despite an agreement between Pakistan and the International Monetary Fund (IMF).

The benchmark KSE-100 index moved within a wide band, touching the intra-day high of 167,562 before midday and dipping to the low of 165,357 just before close. It finally settled at 165,686.

In the morning, trading started with strong sentiment in the backdrop of a staff-level agreement between Pakistan and the IMF on the second review under the Extended Fund Facility and the first review under the Resilience and Sustainability Facility. However, the enthusiasm proved short-lived as investors engaged in profit-taking in the latter half.

Arif Habib Limited (AHL), in its report, observed that the PSX underwent consolidation following a surge of over 7,000 points on Tuesday, with the KSE-100 moving either side of 166k.

Some 52 shares rose while 48 fell, where Fauji Fertiliser (+1.09%), Meezan Bank (+2.02%) and Mari Energies (+1.94%) contributed the most to index gains. On the flip side, Systems Ltd (-2.59%), Lucky Cement (-1.84%) and Engro Fertilisers (-2.69%) were the biggest drags. AHL pointed out that Pakistan had reached a preliminary agreement with the IMF to unlock $1.2 billion in loans under two separate programmes.

Among corporate news, UBL announced earnings for the first nine months of calendar year 2025 (9MCY25), reporting a 101% year-on-year (YoY) increase in earnings per share (EPS) to Rs40.19 and a dividend per share of Rs21.5, which exceeded market expectations.

Sazgar Engineering reported EPS of Rs73.07 for 1QFY26, reflecting a 5% YoY growth, with a dividend of Rs15 per share, which was in line with market expectations. Engro Fertilisers declared 9MCY25 EPS of Rs10.69, down 21% YoY, and a dividend of Rs11, which came in below expectations, AHL said.

KTrade Securities, in its market wrap, wrote that the PSX opened on a bullish note that drove the benchmark KSE-100 index to the intra-day high of 167,562 (+2,086 points). The rally came on the back of strong investor optimism following the IMF's staff-level agreement with Pakistan under the Extended Fund Facility.

However, profit-taking in the latter half trimmed gains and the index eventually settled at 165,686, up a modest 210 points. The momentum was fuelled by commercial banks, among which UBL declared stronger-than-expected 3QCY25 results. Power, OMC and fertiliser sectors also contributed to the uptrend, the report stated.

Notable gainers were Fauji Fertiliser, Meezan Bank, Mari Energies, Bank Alfalah and Pakistan Services. Market participation remained robust as total traded volumes reached 1.53 billion shares, it added.

Overall trading volumes increased to 1.53 billion shares versus Tuesday's tally of 1.18 billion. Traded value stood at Rs68.6 billion. The PSX announced on X that on Wednesday 62% of the total traded equity value was in Shariah-compliant stocks. It also conducted the first-ever Bai' Muajjal auction – a major leap for Islamic finance.

During the day, stocks of 489 companies were traded. Of these, 249 closed higher, 204 declined and 36 remained unchanged.

K-Electric was the volume leader with trading in 383.1 million shares, rising Rs0.54 to close at Rs7.65. It was followed by The Bank of Punjab with 142.1 million shares, up Rs0.9 to close at Rs35.53 and WorldCall Telecom with 116.4 million shares, edging up Rs0.03 to close at Rs1.74. Foreign investors sold shares worth Rs1.6 billion, the National Clearing Company reported.