Profit-taking drags PSX lower

Pakistan Stock Exchange (PSX) ended Friday's session in the red amid pre-weekend profit-taking, though the benchmark KSE-100 index posted a robust weekly gain as improving sentiment surrounding US-Iran negotiations and easing oil prices supported investor confidence throughout the week.

The market initially extended its bullish momentum on reports that negotiations between the United States and Iran had entered the final stage, triggering a decline in international oil prices, before investors opted to book profits ahead of the weekend.

Analysts expect the KSE-100 index to find support in the 157,500-160,000 range, while the next key resistance level is seen at 170,000 in the coming week.

At the close of trading on Friday, the KSE-100 index posted a loss of 670.20 points, or 0.40%, and settled at 167,844.25.

Arif Habib Limited (AHL) noted that the KSE-100 posted a solid weekly gain of 1.3%. The market witnessed a positive breadth with 65 stocks advancing against 34 decliners. Among major contributors to the index gains were PTCL, Engro Fertilisers, and Pakistan Petroleum, while UBL, HBL, and Lucky Cement emerged as the primary drags amid profit-taking on Friday.

On the global front, the UAE has joined Saudi Arabia and Qatar in urging the United States and Iran to pursue negotiations. Technically, the index is expected to find support in the 157,500-160,000 zone, while the next major resistance level stands at 170,000 for the upcoming week.

Topline Securities stated that continuing its momentum, the KSE-100 index opened on a positive note and touched the intra-day high of 0.66%. The positive opening could be attributed to news flow suggesting that US-Iran negotiations had entered a final stage, which resulted in a decline in oil prices.

However, later during the day, investors came in to sell before the weekend, as the index declined 0.4% to close at 167,844. Top negative contribution to the index came from UBL, HBL, Lucky Cement, Engro Holdings and Systems Ltd, as they cumulatively contributed 354 points.

Traded value-wise, PTCL ($5.6 million), PPL ($4 million), NBP ($3.7 million), AGP Ltd ($3.6 million) and UBL ($2.4 million) dominated the activity, Topline said.

Overall trading volumes were recorded at 480.82 million shares compared with the previous session's tally of 729.40 million. The value of shares traded during the day was Rs22.72 billion.

Shares of 486 companies were traded. Of these, 160 stocks closed higher, 280 fell, and 46 remained unchanged.

Sitara Petroleum was the volume leader with trading in 80.10 million shares, gaining Rs0.37 to close at Rs21.16. It was followed by Pervez Ahmed Consultancy with 34.78 million shares, losing Rs0.22 to close at Rs2.81, and PTCL with 26.70 million shares, gaining Rs2.33 to close at Rs58.85. Foreign investors sold shares worth Rs534 million, the National Clearing Company reported.