PSX falls for second day on profit-taking

Consolidation phase continues as KSE-100 defends key support zone

KARACHI:

Stocks closed lower on Friday as late-session profit-taking erased early gains, pushing the benchmark KSE-100 index down by around 1,130 points to 184,410.

Market participants initially maintained a positive stance during morning trade; however, selling pressure intensified in the latter half as investors chose to lock in gains ahead of the weekend, resulting in another negative close for CY26.

At the end of trading, the benchmark KSE-100 index posted a decline of 1,133.34 points, or 0.61%, and settled at 184,409.67.

"Market sentiment stayed positive during the morning session; however, profit-taking and selling pressure dominated the latter half, forcing the benchmark index to register another negative close for CY26," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL).

AHL noted that the KSE-100 index underwent further consolidation within the 184,000-185,000 support zone and concluded a volatile week in which the benchmark managed to post a weekly gain of around 3%.

Friday's session reflected selective buying, with 69 shares advancing against 30 decliners. Fauji Fertiliser Company (+0.42%), Adamjee Insurance (+4.17%) and MCB Bank (+0.69%) contributed the most to index gains. However, the upside momentum was capped by heavyweight pressure, with Hubco (-2.02%), Lucky Cement (-1.88%) and Engro Holdings (-1.07%) emerging as the biggest drags on the index.

On the macro front, sentiment drew support from external inflows, as Pakistan's overseas remittances rose 16.5% year-on-year in December to $3.6 billion, which reinforced optimism around foreign exchange stability.

In the broader regional context, an analysis from the S&P Global Market Intelligence highlighted that smaller Pakistani banks delivered some of the strongest total shareholder returns across the Asia-Pacific region in 2025, supported by a sharp rally in local equities and improving macroeconomic indicators.

Looking ahead, market participants expect the 184,000-185,000 level to remain a key support zone, with the potential for the index to resume its upward trajectory towards 188,000-190,000 in the coming week. However, the primary risk to the bullish outlook remains geopolitical developments in the Middle East, which could trigger volatility and renewed risk aversion.

Topline's market review said that the KSE 100 index largely traded in the negative zone and closed at 184,410 (down by 0.61%), as investors preferred to book profit before the weekend. The top negative contribution to the index came from Hubco, Lucky Cement, Engro Holdings, NBP, Engro Fertilisers and OGDC, which erased 596 points.

Traded value-wise, FFC (Rs2.14 billion), Pakistan Petroleum (Rs1.88 billion), Pak Elektron (Rs1.83 billion), Fauji Foods (Rs1.68 billion), NBP (Rs1.67 billion) and Systems Ltd (Rs1.64 billion) dominated the activity.

"Profit-taking continued at the PSX, where the benchmark index closed down by 1,133 points at 184,410," noted Nawaz Ali of JS Global.

The index fell to the intra-day low of 183,701, marking a decline of 1,842 points. Broad-based selling pressure was observed across most sectors. Major contributors to the decline included Hubco, Lucky Cement, Engro Holdings, NBP and Engro Fertilisers, which collectively shaved 530 points off the index.

"Going forward, we recommend investors to capitalise on attractive valuations and selectively build positions at lower levels," he said.

Overall trading volume was recorded at 1.03 billion shares compared with the previous tally of 1.43 billion. The value of shares traded during the day was Rs52.9 billion.

Shares of 483 companies were traded. Of these, 162 stocks closed higher, 271 fell and 50 remained unchanged.

Fauji Foods was the volume leader with trading in 75.8 million shares, gaining Rs0.87 to close at Rs22.02. It was followed by Hascol Petroleum with 68.3 million shares, gaining Rs0.03 to close at Rs20.18 and Media Times with 56.2 million shares, gaining Rs0.80 to close at Rs7.61.

Foreign investors sold shares worth Rs8.8 billion, the National Clearing Company reported.