PSX ends lower after volatile session

KSE-100 sheds 451 points as profit-taking erases early rally

KARACHI:

The Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Monday, with the benchmark KSE-100 index swinging between gains and losses before ending the day in the red, as investors booked profits after an early rally inspired by positive regional market sentiment.

Taking cues from a broad-based advance across Asian equities, the market opened on a strong footing, with investors initially encouraged by improving geopolitical sentiment and softer oil prices. Buying interest was visible across a range of sectors, including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, oil marketing firms and refineries.

The benchmark KSE-100 index surged to 180,347.98 points in early trading by 9:34am, up 1,425.23 points or 0.80% from the previous close. However, the upward momentum proved unsustainable as investors opted to lock in gains, erasing the market's early advance and pushing the index into negative territory.

During the session, the benchmark index touched an intraday high of 180,507.82 points and a low of 178,337.14 points, reflecting heightened volatility. By the close of trading, the KSE-100 index had shed 450.89 points, or 0.25%, to settle at 178,471.87 points, compared with the previous close of 178,922.75 points.

Despite the decline, trading activity remained healthy as investors continued to assess regional developments and domestic market fundamentals, while profit-taking in heavyweight stocks weighed on overall market performance.

KTrade Securities wrote in its market wrap that the KSE-100 index closed at 178,471 points, declining 450 points or 0.25% day-on-day as investors remained cautious during the first session of the shortened trading week.

Market activity was relatively subdued ahead of the upcoming long holiday break, with participants preferring a selective approach despite pockets of stock-specific interest. Trading activity remained healthy, with 230 million shares changing hands.

Pressure primarily emerged from the commercial banks, cement, exploration and production (E&P), and technology sectors, with major negative contributions coming from Fauji Fertiliser, Bank Al Habib, Habib Bank, Lucky Cement and MCB Bank. On the positive side, Oil and Gas Development Company (OGDC), Millat Tractors and Sui Northern Gas Pipelines (SNGP) provided support and outperformed the broader market.

Going forward, market activity may remain range-bound over the next few sessions as investors position themselves ahead of the extended holidays from Thursday through Sunday, while continuing to monitor macroeconomic and sector-specific developments, KTrade predicted.

According to Arif Habib Limited (AHL), the PSX witnessed some consolidation within the 177-179.5k support zone to start the week. Some 38 shares rose while 61 fell, with OGDC (+0.9%), Millat Tractors (+4.9%) and SNGP (+5.15%) contributing the most to index gains. On the other hand, FFC (-0.5%), Bank Al Habib (-1.53%) and HBL (-1.15%) were the biggest index drags.

Meanwhile, Iranian President Masoud Pezeshkian will travel to Pakistan for talks on expanding economic ties, the semi-official Tasnim news agency reported.

"Price structure remains very constructive with the KSE-100 consolidating the move through 175k, which once concluded, will see the resumption of the strong bullish advance off the March lows to target new all-time highs," AHL wrote.

Cumulatively, trading volume decreased to 807.4 million shares from Friday's close of 1.05 billion. The value of traded shares stood at Rs36.17 billion.

In the ready market, shares of 491 companies were traded. Of these, 214 shares rose, 240 fell and 37 remained unchanged. WorldCall Telecom became the volume leader with trading in 59.6 million shares, falling Rs0.03 to close at Rs1.26. Foreign investors bought shares worth Rs120.6 million, the National Clearing Company reported.