Range-bound session keeps bourse in red

Index loses 200 points, weighed down by mixed performance, lack of triggers

KARACHI:

The Pakistan Stock Exchange (PSX) wrapped up Monday's session on a subdued note, with the benchmark KSE-100 index ending slightly in the red as investors remained cautious in the absence of strong triggers.

Trading activity was largely range bound, where the index touched the day's high at 172,168 and low at 170,859, indicating a lack of clear direction. Participants appeared selective, opting for stock-specific positions rather than broad-based exposure.

Sector-wise performance was mixed. While selling pressure was seen in stocks of banking, fertiliser, energy and cement sectors, certain companies in the food sector managed to attract buyers. The bourse closed at 171,204, down 200 points, or 0.12%.

In its market wrap, KTrade Securities observed that the PSX began the rollover week on a subdued note, with range-bound trading and relatively low volumes on the regular counter. The KSE-100 index slipped 200 points to close at 171,204.

Among blue chips, selling pressure was noted in Habib Bank, United Bank, Fauji Fertiliser, Pakistan State Oil, Cherat Cement and Hub Power, while support came from Lucky Cement, Engro Holdings, Fatima Fertiliser and Rafhan Maize Products, it said. Despite the marginal decline, market participation remained reasonable as all-share volumes stood at 685 million shares, indicating adequate liquidity and continued investor interest.

Looking ahead, the broader market outlook remains constructive on the back of improving macroeconomic situation following the State Bank's policy rate cut. However, with rollover activity underway amid a shortened trading week, market participants are expected to remain cautious in the near term, KTrade predicted.

Arif Habib Limited Deputy Head of Trading Ali Najib commented that as anticipated the PSX witnessed a lacklustre session as the index stayed range bound and closed at 171,204, down 200 points.

Market sentiment was weak and directionless amid the first day of the rollover week. The index recorded the intra-day high of 172,168 (+763 points) and low of 170,859 (-546 points).

Najib mentioned that Pakistan was edging closer to launching the $1 billion Panda Bond, with the inaugural tranche of $250 million targeted for January, as conveyed by the Ministry of Finance.

On the corporate side, Globacore Minerals, in which Fatima Fertiliser holds a 32% stake, entered into a joint venture with Mari Minerals, a wholly owned subsidiary of Mari Energies, for copper and gold mining.

Among major movers, Lucky Cement, Engro Holdings, Fatima Fertiliser, Rafhan Maize Products and Service Industries added 347 points, while HBL, UBL, Fauji Fertiliser, PSO and Cherat Cement erased 298 points. As the market moves through the rollover week, subdued activity coupled with routine selling pressure may weigh on sentiment and add to near-term negativity, Najib said.

JS Global analyst Muhammad Hasan Ather wrote that the KSE-100 closed at 171,204, down 200 points. Despite hitting the intra-day high of 172,168, the market remained under pressure due to aggressive profit-taking following six consecutive weeks of record-breaking highs.

The decline was primarily driven by the start of rollover week, leading to cautious trading as investors squared off positions, he said, adding that the outlook was cautiously bullish while consolidation was expected near current levels. Overall trading volumes decreased to 684.5 million shares versus previous tally of 797.5 million. The value of traded shares stood at Rs30.1 billion.

Shares of 486 companies were traded. Of these, 143 jumped, 288 dropped and 55 remained unchanged. K-Electric was the volume leader with trading in 112.7 million shares, rising Rs0.25 to close at Rs6.10. It was followed by TPL REIT Fund – I with 49.3 million shares, losing Rs0.47 to close at Rs10.52 and PIA Holding Co with 29.3 million shares, falling Rs4.31 to close at Rs39.67. Foreign investors bought shares worth Rs72.3 million, the NCCPL reported.