PSX holds near 188,000 on heavyweight support

Easing T-bill yields lift sentiment despite mixed breadth, profit-taking

KARACHI:

The Pakistan Stock Exchange (PSX) remained range-bound but positive as the KSE-100 Index continued to consolidate around the 188,000 level, supported by gains in key index heavyweights and improved sentiment driven by easing T-bill yields. Despite mixed market breadth and intermittent profit-taking, benchmark performance remained resilient on the back of strength in select energy, fertiliser and industrial stocks, while corporate developments and external political news provided additional cues. Heading into the final session of the week, the market maintained a positive weekly trajectory, with technical support seen near the 185,000 level and expectations of further upside in the near term.

"PSX had a consolidation day, with the KSE-100 Index closing at 187,688," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd. ENGROH, HUBC, EFERT, ATRL and AICL added a combined 607 points to the benchmark. On the flip side, gains were partially offset by losses in UBL, HBL, BOP, FFC and MARI, which together erased 217 points.

At the close of trading, the benchmark KSE-100 Index posted a modest gain of 654.90 points, or 0.35%, and settled at 187,688.16.

An Arif Habib Limited (AHL) report said the KSE-100 continued to consolidate around the 188,000 level during the week, with market breadth remaining mixed as 55 shares advanced while 43 declined. Index gains were primarily driven by ENGROH PA (+3.16%), HUBC PA (+1.4%) and EFERT PA (+1.99%), while UBL PA (-0.6%), HBL PA (-0.75%) and BOP PA (-1.77%) emerged as the largest drags. On the political front, Pakistan accepted President Donald Trump's invitation to join his Board of Peace initiative, becoming the latest country to sign onto the body alongside seven others. On the corporate side, AIRLINK PA (+1.31%) informed the exchange that its wholly owned subsidiary has entered into a strategic partnership with HISENSE for the manufacturing and distribution of home appliances in Pakistan, including smart TVs and air conditioners. Heading into the final session of the week, the KSE-100 is up 1.4% week-on-week, with 185,000 acting as a key support level.

A Topline market review stated that the KSE-100 Index ended the day higher at 187,688 points, gaining 654 points. Trading remained volatile, with the index moving between an intraday high of 188,106 points and a low of 186,852 points. Sentiment improved on the back of falling T-bill yields. Key index heavyweights, including ENGROH, HUBC, EFERT, ATRL and AICL, added a combined 606 points to the benchmark, partially offset by losses in UBL, HBL and BOP, which together erased 174 points. Overall market participation remained strong, with 1.066 billion shares traded and a total value of Rs49 billion. K-Electric led the volume chart with 195 million shares.

"After some continuous bullish sessions, bears returned at PSX today as investors preferred to book profits at higher levels," said Nawaz Ali of JS Global. Selling was witnessed almost across the board, with major contributions to index pressure coming from MEBL, ENGROH, MCB, SYS and UBL. He said valuations remain attractive, while the market is expecting another rate cut in the upcoming monetary policy. He advised investors to adopt a 'buy on dips' strategy with a focus on oil and gas and banking stocks.

Overall trading volume was recorded at 1.07 billion shares in the ready market, compared with the previous session's 1.33 billion. The value of shares traded during the day stood at around Rs49.2 billion. Shares of 486 companies were traded, of which 238 closed higher, 201 fell and 47 remained unchanged.

K-Electric Ltd was the volume leader with trading in 195.9 million shares, gaining Rs0.09 to close at Rs7.10. It was followed by Hascol Petroleum with 131.5 million shares, losing Rs1.94 to close at Rs26.11, and Bank Makramah with 57.6 million shares, gaining Rs0.15 to close at Rs5.21.

Foreign investors sold shares worth Rs1.8 billion, the National Clearing Company reported.