KSE-100 loses 385 points to close at 188,202 in volatile session

Macroeconomic uncertainty kept PSX volatile a day after SBP held the policy rate at 10.5%

Macroeconomic uncertainty continued to weigh on the Pakistan Stock Exchange (PSX) on Tuesday, as heightened volatility persisted a day after the State Bank of Pakistan’s (SBP) decision to maintain the key policy rate at 10.5%.

In the morning, trading commenced on a positive note, with the benchmark index gaining momentum in early hours; however, the optimism proved short-lived as selling pressure dominated key sectors. Automobile assemblers, cement, fertiliser, oil and gas exploration companies, oil marketing companies (OMC), power generation, and refinery stocks remained under pressure throughout the session.

Read More: Business community slams SBP for Holding Policy Rate at 10.5%

The benchmark KSE-100 index swung sharply during the session, touching an intra-day high of 189,521.32 before sliding to a low of 187,538.23. Ultimately, the index settled at 188,202.86, down 384.80 points, or 0.20% as investors adopted a cautious stance amid sector-specific profit-taking and subdued institutional participation.

KTrade Securities wrote in its market wrap the session remained largely range-bound, reflecting cautious investor sentiment. Selling pressure emerged following the SBP’s decision to keep the policy rate unchanged, which prompted profit-taking, particularly in cyclical stocks.

However, there came some positivity following the SBP’s move to reduce capital requirements for banks, resulting in strength across the banking sector. Meanwhile, the ongoing results season continued to influence investor behaviour, keeping overall market direction mixed.

On a point contribution basis, Fauji Fertiliser led gains, supported by Meezan Bank, Pakistan Petroleum, Systems Limited, and Bank Al Falah. Conversely, Engro Holdings, Engro Fertiliser, Hub Power, Lucky Cement, MCB Bank, and Maple Leaf Cement dragged the index lower, report added.

Sector-wise, fertilisers, commercial banks, and oil & gas stocks closed in the green, while cements, investment banks, and power stocks remained under pressure. Looking ahead, KTrade expected futures rollover activity to remain cautious, while geopolitical tensions between Iran and the US may continue to cap upside, keeping the market subdued in the near term.

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Overall trading volume decreased to 749.2 million shares versus Monday’s total of 870.4m. Stocks of 486 companies were traded. Of these, 160 rose, 278 fell and 48 remained unchanged. The value of shares traded during the day was Rs53 billion. K-Electric was the volume leader with trading in 90.2m shares, gaining Rs0.07 to close at Rs7.04.