PSX extends losses on Middle East tensions

KSE-100 loses 831 points, holds 170k level despite selling pressure

KARACHI:

Pakistan's stocks extended their losing streak on Wednesday as investors resorted to profit-taking amid a lack of positive triggers and lingering concerns over geopolitical tensions in the Middle East, dragging the benchmark KSE-100 index down by more than 830 points.

"Another day was lost to geopolitical uncertainty," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL).

At the close of trading, the KSE-100 index posted a decline of 831.13 points, or 0.49%, and settled at 170,190.64.

According to AHL, the PSX remained under pressure as the benchmark index shed 831 points. The market traded in a broad range of 1,834 points during the session but managed to hold the key 170,000-point level despite persistent selling pressure.

It said market breadth remained weak, with only 25 stocks rising against 74 decliners. Honda Atlas Cars emerged as the largest positive contributor, adding 20.8 points, followed by MCB Bank, Systems Limited and Pakistan Petroleum Limited (PPL). On the downside, Lucky Cement, United Bank (UBL), Meezan Bank and Lotte Chemical weighed heavily on the index.

The brokerage house attributed the subdued investor sentiment to escalating geopolitical tensions in the Middle East, including attacks by the US and Iran, and concerns over regional oil supplies. It also highlighted key developments such as OGDC's board approval of a project expected to produce 2,000 barrels of oil and 1.1 million cubic feet of gas per day, while investors continued to await the federal budget due on June 10.

Market activity remained modest, with traded volumes reaching 551.9 million shares and value clocking in at Rs23.8 billion. AHL noted that buying interest continued to emerge around the 170,000-point level and maintained its medium-term target of 175,000 for the KSE-100.

Topline Securities noted that the KSE-100 index ended Wednesday's session on a bearish note, closing down by 831 points (-0.49%). The index traded in a wide intra-day range, touching the high of 171,624 before sliding to the low of 169,790, reflecting persistent selling pressure throughout the session.

The decline was largely driven by profit-taking and cautious investor sentiment amid a lack of fresh positive triggers. Ongoing geopolitical tensions in the Middle East, particularly the absence of a US-Iran peace agreement, and its impact on global oil prices further dampened market confidence.

On the index front, heavyweight stocks bore the brunt of selling, with Lucky Cement, UBL, Meezan Bank, Engro Holdings and Hubco collectively dragging the benchmark lower by 343 points, Topline said.

Overall trading volumes were recorded at 551.95 million shares compared with the previous session's tally of 550.79 million. The value of shares traded during the day was Rs23.76 billion.

Shares of 491 companies were traded. Of these, 183 stocks closed higher, 267 fell and 41 remained unchanged.

Treet Battery was the volume leader with trading in 46.64 million shares, losing Rs0.03 to close at Rs10.79. It was followed by Dewan Cement with 33.76 million shares, gaining Rs0.40 to close at Rs12.20 and Sitara Petroleum with 25.24 million shares, gaining Rs0.84 to close at Rs20.13.

Foreign investors sold shares worth Rs379 million, the National Clearing Company reported.