PSX drops 1,437 points as early gains vanish

KSE-100 index sinks 0.92% and closes at 154,421 amid oil market volatility

KARACHI:

Pakistan's stock market extended losses on Thursday as persistent selling pressure and cautious investor sentiment pushed the benchmark KSE-100 index sharply lower amid geopolitical uncertainties and profit-taking.

The market dropped nearly 1,440 points, erasing early-session gains over investors' reaction to volatility in international oil prices and concerns stemming from the ongoing Middle East conflict.

Arif Habib Limited (AHL) noted that the Pakistan Stock Exchange (PSX) experienced a bearish session as the KSE-100 Index fell 1,437 points (-0.92%) to close at 154,421.43. The decline contributed to a significant monthly downturn, with the index now down 8.12% for March and 11.28% for the calendar year to date.

Market activity remained concentrated, where total traded volumes reached 404 million shares, valuing at around Rs25 billion. Technically, the index continues to trade around its 200-day moving average, a critical level that traders are watching to determine if it will act as a firm floor of support or a ceiling of resistance, AHL said.

The day's performance was characterised by broad selling pressure as 71 stocks declined on the KSE-100 while only 25 managed to gain. Heavyweights such as UBL (-2.44%), Lucky Cement (-3.30%) and OGDC (-2.99%) acted as primary drags on the index. Conversely, the downside was somewhat mitigated by strong performances from Service Industries (+5.73%), Systems Ltd (+5.41%) and Engro (+4.36%), which emerged as leading contributors to the index gains. In terms of individual stocks, Engro Fertilisers led in traded value at $8.9 million, while Hascol Petroleum dominated volumes with 38.3 million shares changing hands.

On the macroeconomic and geopolitical fronts, investor sentiment was being shaped by high-level diplomatic engagements and potential foreign investment. Prime Minister Shehbaz Sharif was travelling to Saudi Arabia to meet Crown Prince Mohammed bin Salman to discuss regional security and bilateral relations, AHL mentioned.

Additionally, there was positive news regarding industrial development as Chinese companies were reportedly weighing a $2.6 billion investment in manufacturing and $14 million in mineral projects in Balochistan. Despite the current volatility, analysts note that the market is entering a historically strong seasonal window that typically runs from late March through August.

Topline Securities, in its review, observed that the market opened under pressure, with early selling pushing the index down to the intra-day low of 2,354 points. Mid-session optimism sparked a rebound, briefly lifting the market into positive territory and to the day's high of 1,221 points. However, the recovery proved short-lived as profit-taking and cautious sentiment due to the Middle East conflict dragged the index back into the red.

By the closing bell, the benchmark settled at 154,421, down 1,437 points (-0.92%), as investors reacted to fluctuations in international oil prices and a volatile global backdrop. Among index-heavy stocks, ENGROH, SYS, SRVI, EFERT and HINOON emerged as key gainers, collectively adding 745 points. On the flip side, UBL, LUCK, OGDC, HUBC and MCB weighed heavily on the market, cumulatively erasing 972 points, Topline said.

During the day, shares of 471 companies were traded in the ready market. Of these, 157 stocks closed higher, 252 fell and 62 remained unchanged.

Hascol Petroleum was the volume leader with trading in 38.3 million shares, gaining Rs1.25 to close at Rs17.46. It was followed by K-Electric with 38.1 million shares, gaining Rs0.10 to close at Rs7.59 and Dost Steels with 25.1 million shares, losing Rs0.14 to close at Rs5.50. Foreign investors sold shares worth Rs725 million, the National Clearing Company reported.