Geopolitical fears, oil prices drag PSX lower

KSE-100 sheds 952 points as foreign investors remain net sellers

KARACHI:

The Pakistan Stock Exchange (PSX) on Thursday extended its bearish activity as rising international oil prices, persistent geopolitical uncertainty surrounding the US-Iran situation and foreign selling kept investors cautious, dragging the benchmark KSE-100 index down by around 950 points.

Heavy selling in index-heavy banking, technology and energy stocks, including UBL, Systems Ltd, Bank Alfalah, Fauji Cement and Pakistan Petroleum, weighed significantly on the benchmark amid volatile intraday trading. At close, the KSE-100 index posted a decline of 952.30 points, or 0.57%, and settled at 166,498.84.

Arif Habib Limited (AHL) noted that the PSX remained under pressure as the KSE-100 extended its losing streak for the week, shedding 952.3 points. UBL fell 2.5%, Systems Ltd declined 1.82% and Bank Alfalah lost 2.53%, collectively weighing heavily on market performance.

Sentiment remained cautious amid geopolitical tensions, although reports suggesting efforts to end the war near the UAE and indications that a senior RSS leader in India favoured diplomatic engagement with Pakistan offered some relief to investors. Analysts noted that the KSE-100 had entered a weekly support zone around the 200-day moving average, where institutional demand was expected to emerge. They added that the market still had the potential to move towards the 175,000-point level in the medium term.

Trading activity improved slightly, with total traded volumes in the regular market rising to 706 million shares compared with 684.9 million in the previous session. Traded value stood at Rs19.9 billion ($71 million), while the overall market capitalisation settled at Rs18.5 trillion. Among the actively traded stocks, PSO led with a traded value of $3.6 million, followed by Bunnys Ltd, UBL and BOP. On the gainers' side, Gadoon Textile rose 9.5% to close at Rs324.8, Javedan Corp gained 4.5% to Rs134.6, while TRG added 1.04% to settle at Rs63.2. Among laggards, Pak-Gulf Leasing declined 1% to Rs15, Ibrahim Fibres dropped 11.2% to Rs211.5, and Adamjee Insurance slipped 2.6% to Rs76.4.

Topline Securities highlighted that the local bourse witnessed another volatile trading session, with the benchmark index swinging sharply throughout the day amid cautious investor sentiment. The index touched the intra-day high of 1,077 points and the intra-day low of 1,052 points before settling at 166,499, down 952 points.

Market participants remained wary due to the lack of tangible progress in ongoing negotiations and persistent uncertainty surrounding developments between the United States and Iran. Adding to the pressure, elevated international oil prices continued to dampen investor confidence, keeping overall market sentiment fragile throughout the session.

Index-heavy stocks including United Bank Ltd, Systems Ltd, Bank Alfalah, Fauji Fertiliser Co, and Pakistan Petroleum remained under selling pressure, dragging the index down by 580 points, Topline said.

Overall trading volumes were recorded at 706 million shares compared with the previous session's tally of 684.9 million. The value of shares traded during the day was Rs19.9 billion.

During the day, shares of 484 companies were traded. Of these, 155 stocks closed higher, 293 fell, and 36 remained unchanged.

Bunnys Ltd was the volume leader with trading in 115.4 million shares, losing Rs0.39 to close at Rs7.08. It was followed by Trust Brokerage with 62.8 million shares, gaining Rs0.02 to close at Rs2, and Treet Battery with 56.8 million shares, losing Rs0.03 to close at Rs10.28.

Foreign investors sold shares worth Rs79.3 million, the National Clearing Company reported.