PSX ends lower amid choppy trading

KARACHI:

The Pakistan Stock Exchange (PSX) on Tuesday witnessed a mixed yet largely negative session as investors remained cautious amid geopolitical uncertainty surrounding US-Iran peace negotiations.

After commencing trading on a firm footing, the benchmark KSE-100 index moved higher in early trade as renewed buying interest pushed the market to the intra-day high of 171,571.56 points. The momentum, however, proved short-lived, with investors resorting to profit-taking and dragging the index into negative territory during the latter half.

Subsequently, the index slipped to the intra-day low of 168,823.32 before closing at 168,916.22, down 1,590.09 points, or 0.93%.

Market participants largely remained on sidelines amid prevailing uncertainty in global markets over regional developments, which continued to dampen risk appetite. Selling was observed across key sectors, erasing early gains and keeping the market under pressure.

KTrade Securities equity trader Ahmed Sheraz noted that it was a mixed yet predominantly negative session as investor sentiment turned cautious amid persistent geopolitical uncertainty surrounding US-Iran conflict-related developments.

Market participation stayed relatively muted in heavyweight sectors. Pressure remained concentrated in commercial banks and select index-heavy names including United Bank, Lucky Cement, Engro Holdings, Habib Bank, Hub Power, Systems Limited and Maple Leaf Cement, which collectively dragged the benchmark index down.

Investor concerns revolved around the continued surge in international oil prices, with Brent hovering near $108-109 per barrel, raising fears of further inflationary pressure domestically through higher fuel and energy costs. The recent surprise spike in inflation, coupled with the State Bank's earlier 100-basis-point rate hike, further reinforced cautious positioning across equities.

Going forward, the market is expected to remain headline-driven and volatile, with investor focus centred on US-Iran negotiations and developments pertaining to the Strait of Hormuz, Sheraz wrote.

According to Arif Habib Limited (AHL), continued selling took the KSE-100 below 170k following no breakthrough in US-Iran peace talks.

Only 14 shares rose while 86 fell, with TRG Pakistan (+10%), Meezan Bank (+0.32%) and Air Link Communication (+2.34%) contributing the most to the index gains. On the other hand, UBL (-1.46%), Lucky Cement (-1.8%) and Engro Holdings (-1.28%) were the biggest index drags.

President Trump said the ceasefire between the US and Iran was on a "massive life support" after he rejected Tehran's latest peace offer. Additionally, Pakistan and China signed more than 300 memoranda of understanding and over three dozen joint-venture agreements worth around $13 billion over the past two years, AHL mentioned.

Pakistan's services' exports rose 17.05% during the first nine months of the current fiscal year, driven mainly by higher earnings in the IT sector. AHL added that the index had entered a weekly support zone between 167,000 and 170,500, from where demand was expected to emerge.

Topline Securities commented that the local bourse witnessed a rollercoaster session as investors navigated through heightened geopolitical uncertainty.

Market sentiment remained fragile amid the US-Iran conflict, where the lack of clarity kept participants on edge. Adding fuel to the nervousness, the global oil prices continued their upward trajectory, triggering widespread profit-taking across key sectors and leading to a highly volatile trading session.

Index-heavy stocks including UBL, Lucky Cement, Engro Holdings, HBL, Hubco and Fauji Fertiliser dragged the KSE-100 down by 750 points, Topline added.

Overall trading volumes decreased to 1.02 billion shares against Monday's total of 1.10 billion. The value of shares traded during the day stood at Rs32 billion. Shares of 485 companies were traded. Of these, 106 climbed, 346 fell and 33 remained unchanged.

Cnergyico PK was the volume leader with trading in 154.1 million shares, gaining Rs0.15 to close at Rs8.81. Foreign investors bought shares worth Rs280.4 million, the National Clearing Company reported.