PSX ends lower, lacks market triggers

KSE-100 slips 834 points amid range-bound trading; fertiliser, oil stocks weigh

KARACHI:

The Pakistan Stock Exchange (PSX) ended Friday's session on a weak note as the KSE-100 index dropped 834 points, or 0.51%, to close at 162,103 amid dull, range-bound trading and low volumes.

Market reviewers noted the absence of fresh triggers, with the index oscillating between gains and losses before coming under pressure near close. Fertiliser, oil and cement stocks led the decline, while HBL, The Bank of Punjab (BOP) and Fatima Fertiliser provided limited support.

Trading volumes remained robust at around 768 million shares, led by WorldCall, K-Electric and Bank Makramah, while foreign investors offloaded Rs247 million worth of equities.

"Range-bound activity was observed for most part of the trading session as the index traded between positive and negative zones with low volumes," noted Topline Securities in its market review. However, pressure was observed in the closing hours as the index dipped to end the session at 162,103, down 0.51%. "This dull activity can be attributed to a lack of triggers/news in the market," it said.

Top positive contribution to the index came from HBL, BOP, Fatima Fertiliser, MCB Bank and Habib Metropolitan Bank, as they cumulatively contributed 150 points. On the other hand, Fauji Fertiliser Company (FFC), Pakistan Petroleum Ltd (PPL), Engro Holdings and Maple Leaf Cement lost value to pull the index down by 417 points.

Traded value-wise, PPL (Rs1.4 billion), Hubco (Rs1.19 billion), OGDC (Rs1.12 billion), Mari Petroleum (Rs1.12 billion) and BOP (Rs962 million) dominated the activity, Topline added.

Arif Habib Limited (AHL) noted that persistent pressure throughout the day once again prevented the benchmark index from breaching the 164,000 level. Market breadth remained negative, with only 29 stocks advancing against 67 declining.

Among the key contributors to the index's limited gains were HBL (+0.84%), BOP (+1.89%) and Fatima Fertiliser (+1.96%). On the other hand, FFC (-1.48%), PPL (-1.48%) and Engro Polymer (-0.82%) emerged as the major drags, it said.

Meanwhile, AHL mentioned, sentiment received some support from developments on the privatisation front, as four companies have been prequalified for participation in the upcoming auction of a 75% stake in PIA Holding Company, which surged 8.89% on the news.

Overall, the KSE-100 index remained flat on a week-on-week basis and continued to trade within the 157,000-164,000 band. Analysts expect a decisive breakout in the coming weeks that could determine market direction for the first quarter of CY26, AHL added.

"PSX saw typical Friday profit-taking as investors trimmed positions ahead of the upcoming rollover week," commented KTrade in its report. Pressure came largely from fertiliser, oil & gas and cement stocks, with FFC, PPL, Engro and Maple Leaf leading the downside.

Overall trading volumes in the ready market were recorded at 768.1 million shares compared with the previous tally of 725.9 million. The value of traded shares stood at Rs28.6 billion.