PSX consolidation extends into 6th session

The Pakistan Stock Exchange (PSX) remained under pressure on Thursday as consolidation in equities stretched into a sixth consecutive session, with the benchmark KSE-100 index closing lower amid volatile trading and weak market breadth.

The index settled slightly above 181,450, down about 1,110 points, after swinging sharply between the intra-day high of 183,718 and low of 180,784. "Market momentum stayed muted as rising geopolitical tensions cast a long shadow over investor sentiment," noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL). "Escalating uncertainty in the Middle East kept participants on the sidelines, prompting a cautious, wait-and-see approach and limiting risk appetite despite the underlying market resilience."

AHL noted that consolidation at the PSX extended into a sixth consecutive session, with the benchmark index sliding 0.61% as market breadth remained weak. Of the traded shares, only 28 closed in the green while 71 remained lower, reflecting sustained selling pressure.

Index gains were supported primarily by select energy and industrial names, with OGDC rising 1.63%, Pakistan Petroleum gaining 1.92% and Atlas Honda surging 7.03%. However, these advances were more than offset by losses in heavyweight stocks as UBL fell 1.2%, Engro Holdings declined 1.78% and Systems Ltd dropped 2.34%.

On the macro and geopolitical fronts, the sentiment was influenced by comments from Turkish foreign minister, who stated that Turkiye was in talks to join a regional defence pact involving Pakistan and Saudi Arabia. Separately, in a move aimed at strengthening Pakistan's digital finance ecosystem, the government signed a memorandum of understanding with World Liberty Financial to explore the use of the company's $1 stablecoin for cross-border payments.

Heading into the final session of the week, the KSE-100 is down 1.6% week-on-week, with analysts cautioning that downside risk remains, including the possibility of a stop-loss-driven move towards 180,000 before any meaningful reversal to the upside, AHL said.

Topline's market review highlighted that the KSE-100 index ended the session in the red, settling at 181,456, down 1,113 points. Trading remained volatile throughout the day, with the index touching the intra-day high of 183,718 and sliding to the low of 180,784.

Select index heavyweights – OGDC, PPL and Atlas Honda – offered notable support, together adding 266 points to the benchmark. However, losses in UBL, Engro Holdings, Systems Ltd, MCB and Engro Fertilisers overshadowed those gains, collectively dragging the index down by 622 points, said Topline.

Muhammad Hasan Ather of JS Global mentioned that the KSE-100 index endured a volatile session, closing down by 0.6%. Despite an early intra-day rally, the market succumbed to renewed selling pressure amid profit-taking. The bearish sentiment was primarily triggered by heightened geopolitical tensions in the Middle East and concerns over a potential reacceleration of inflation due to rising energy costs and external sector imbalances. While the current volatility persists, the long-term outlook remains cautiously optimistic, he said.

Overall trading volumes were recorded at 820 million shares compared with the previous tally of 1.03 billion. The value of traded shares stood at Rs46 billion.

Shares of 482 companies were traded. Of these, 150 stocks closed higher, 289 fell and 43 remained unchanged.

Hascol Petroleum was the volume leader with trading in 62.7 million shares, gaining Rs1.09 to close at Rs20.64. Foreign investors sold shares worth Rs707 million.