PSX slightly up in range-bound trading

Index gains 178 points amid caution over ME situation, profit-taking

KARACHI:

The Pakistan Stock Exchange (PSX) on Wednesday remained highly volatile, reflected in continuous fluctuations in the benchmark KSE-100 index, which ended the session slightly higher over investor caution in the absence of major positive cues.

Oil companies were in the limelight as market players closely watched developments in the volatile Middle Eastern region. However, interest remained confined to selective stocks. The market also saw profit-taking at higher valuations.

The index moved within a narrow band, hitting the intra-day high of 189,184 and low of 188,180. By the close, it recorded a thin gain of 177.53 points, or 0.09%, and settled at 188,380.39.

JS Global analyst Nawaz Ali commented that buying interest in oil stocks kept sentiment positive, which helped the KSE-100 close up by 178 points. Key oil & gas stocks such as Pakistan Petroleum, Pakistan State Oil and OGDC remained in the limelight, driving the index to the intra-day high of 189,184 (+981 points). However, profit-taking emerged at higher levels as investors preferred to stay cautious amid tensions in the Middle East, he said.

KTrade Securities remarked that the PSX closed slightly higher at 188,380, with trading largely range bound owing to the cautious stance of investors, resulting in selective participation. Despite the absence of any fresh escalation in the Middle East, investors largely stayed on the sidelines. Profit-taking in cyclical stocks continued following the State Bank's decision to keep policy rate unchanged, limiting the upside momentum, it said.

Sector-wise, oil & gas, commercial banks and cement closed in the black whereas fertiliser and technology stocks were largely inactive. "We expect range-bound activity to persist until the rollover week concludes. Corporate results are likely to remain the key catalyst for near-term market direction," KTrade said.

Arif Habib Limited Deputy Head of Trading Ali Najib said that the PSX witnessed a range-bound session as the KSE-100 index moved sideways and closed at 188,380, up 178 points. Investors remained cautious in the absence of fresh positive triggers, while the rollover week kept intermittent selling pressure intact throughout the day.

According to the latest data, gas production increased to 3,197 million cubic feet per day in the third week of January, the highest level since January 2025, while oil output rose to 67,066 barrels per day, marking the peak since August 2024. The improvement was largely driven by higher gas production from Mari Energies and better supply to fertiliser and power plants as well as reduced curtailments at northern oil fields.

Najib mentioned that Fauji Fertiliser Company's (FFC) board approved the acquisition of 214.7 million ordinary shares (25% stake) in Fauji Fertiliser Bin Qasim Power Company (FPCL) from its parent Fauji Foundation. Post-transaction, FFC's ownership of FPCL will rise to 100%.

UBL, Pakistan Petroleum, Pioneer Cement, Oil & Gas Development Company and Pakistan Oilfields provided notable support to the index by contributing 690 points. However, profit-taking in Fauji Fertiliser, Mari Energies and Hub Power erased 429 points, he added.

Overall trading volumes increased to 953.9 million shares versus Tuesday's tally of 749.2 million. The value of shares traded during the day was Rs48.9 billion.

Shares of 485 companies were traded. Of these, 182 stocks rose, 253 dropped and 50 remained unchanged.

K-Electric was the volume leader with trading in 198.7 million shares, gaining Rs0.26 to close at Rs7.30. Foreign investors bought shares worth Rs61.2 million, the National Clearing Company reported.