Late sell-off drags PSX lower by 1,200 points

KARACHI:

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) extended its losses on Friday, dropping 1,200 points to close slightly above 151,700, as late-session selling wiped out early gains amid investor concerns over escalating Middle East tensions and their potential impact on global energy prices and inflation.

The market remained range bound in the first half, reflecting cautious participation, but sharp selling pressure in the latter part of the session dragged the index close to its intra-day low, when investors opted for profit-taking ahead of the weekend.

Heavyweight stocks, particularly Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), National Bank of Pakistan (NBP), United Bank Limited (UBL) and Mari Petroleum (MARI), led the decline, collectively eroding over 600 points from the index.

At the close of trading, the KSE-100 index posted a decline of 1,200.45 points, or 0.79%, and settled at 151,707.52.

Topline Securities, in its review, stated that the KSE-100 extended its downward trend, falling by 0.79%, over growing investor concerns about Middle East tensions and their potential impact on energy prices, which heightened inflation risks.

The top negative contribution to the index came from OGDC, PPL, NBP, UBL and MARI, as they cumulatively wiped off 614 points. Traded value-wise, OGDC (Rs2.23 billion), PPL (Rs1.84 billion), PSO (Rs1.22 billion), FFC (Rs1.19 billion) and Engro Holdings (Rs826 million) dominated the activity, Topline said.

According to Arif Habib Limited (AHL), the KSE-100 index declined by 0.65% week-on-week, having traded as high as 158,500 before closing near its weekly lows, reflecting sustained selling pressure.

During Friday's session, market breadth remained weak, with 24 stocks advancing while 73 declined. Systems Limited (SYS), Meezan Bank (MEBL) and Fatima Fertiliser (FATIMA) were the top positive contributors, gaining 1.96%, 0.96%, and 1.79%, respectively. On the downside, OGDC, PPL and NBP were the major drags, falling by 3.1%, 2.94% and 3.6%, respectively.

On the macro front, the headline inflation for March is expected to settle at 7.6% year-on-year, with a month-on-month increase of 1.5%, which kept investors cautious. Meanwhile, Barrick Mining's decision to slow down the development of its Reko Diq copper and gold project, citing security conditions and regional instability, weighed on exploration and production stocks.

The government's assurance of adequate petroleum stocks for April and beyond provided some relief, although broader concerns persisted. With geopolitical uncertainty in the Middle East continuing to dominate sentiment, investors remained cautious while heading into the weekend. Technical levels indicate resistance at 160,000 and support at 150,000 for the coming week, AHL added.

Mubashir Anis Naviwala of JS Global stated that the KSE-100 traded in a narrow range during the first half, reflecting cautious participation. However, sharp selling pressure emerged in the second half, dragging the benchmark index lower. The late-session decline erased earlier gains as investors opted for profit-taking.

Pressure was mainly observed in banking, cement and fertiliser sectors. Traded volumes indicated moderate activity while overall sentiment remained cautious as investors continued to monitor geopolitical developments and market stability, he said.

Overall, the market turnover was recorded at 435.51 million shares compared with the previous tally of 521.63 million. The value of shares traded during the day was Rs23.99 billion.

Shares of 478 companies were traded in the ready market. Of these, 126 stocks closed higher, 287 fell, and 65 remained unchanged.

K-Electric was the volume leader with trading in 56.99 million shares, losing Rs0.13 to close at Rs6.93. It was followed by First National Equities with 27.18 million shares, losing Rs0.03 to close at Rs1.15 and TPL REIT Fund I with 19.73 million shares, gaining Rs0.11 to close at Rs8.31. Foreign investors bought shares worth Rs563.5 million, the National Clearing Company reported.