PSX remains weak on crude oil, geopolitics

The KSE-100 index fell over 715 points at the Pakistan Stock Exchange (PSX) on Friday as renewed US-Iran tensions and higher oil prices kept investor sentiment under pressure.

The decline left the index testing its 200-day moving average, a level that has provided reliable support in recent months. Markets now look ahead to the State Bank's policy meeting next week, where rates are expected to remain unchanged amid fluid global conditions.

At the close of trading, the benchmark KSE-100 index posted a loss of 718.25 points, or 0.42%, and settled at 171,021.20.

Arif Habib Limited (AHL) noted that the KSE-100 closed down by 718 points and extended its weekly decline to 2.72% while trading below the 170,000 level. Among the active stocks on Friday, 32 advanced and 67 declined. Adamjee Insurance, TRG Pakistan and Meezan Bank provided major support, rising 6.38%, 3.66% and 0.3%, respectively. On the downside, UBL, NBP and Systems Limited were the heaviest drags, falling 1.2%, 2.18% and 1.66%.

AHL mentioned that the State Bank's Monetary Policy Committee would meet next week where the policy rate was expected to be kept unchanged at 11.5% amid still-fluid global conditions since the June review. The breakdown of the US-Iran ceasefire had shifted attention back to geopolitical risks and their potential impact on energy markets, it said.

Key corporate results due in the coming week include PTCL, Engro Fertilisers, Fauji Fertiliser Company, Honda Atlas Cars and Maple Leaf Cement. "The benchmark index has now fallen 10% from its July peak and is once again testing its 200-day moving average, a level that has offered solid support in recent months and is expected to hold. The 190,000 mark remains the key upside target," AHL added.

Topline Securities, in its review, observed that the KSE-100 traded largely in negative territory throughout the session on Friday, primarily due to a sharp rise in crude oil prices, which surged to around $100 per barrel. During intra-day trading, the index declined by as much as 1.3%. However, in the latter half, investor sentiment improved following a pullback in oil prices, leading to a partial recovery. Consequently, the KSE-100 settled at 171,021, down 0.42%.

The top negative contribution to the index came from UBL, NBP, Systems Ltd, HBL and Fauji Fertiliser, as they cumulatively wiped off 436 points. Traded value-wise, Maple Leaf Cement (Rs1.16 billion), DG Khan Cement (Rs1.15 billion), Lucky Cement (Rs894 million), OGDC (Rs851 million) and UBL (Rs779 million) dominated the activity, it said.

The KSE-100 extended its week-on-week decline by 2.7%, as continued escalation in tensions between the US and Iran pushed crude oil prices higher, dampening investor sentiment, according to Topline.

Overall trading volumes were recorded at 579.94 million shares compared with the previous session's tally of 525.12 million. The value of shares traded during the day was Rs23.90 billion.

Shares of 492 companies were traded. Of these, 186 stocks closed higher, 270 fell, and 36 remained unchanged.

Cnergyico Pk was the volume leader with trading in 59.33 million shares, gaining Rs0.19 to close at Rs10.29. It was followed by Trust Brokerage with 36.98 million shares, remaining unchanged at Rs2.24, and Kohinoor Spinning with 32.63 million shares, gaining Rs0.51 to close at Rs6.05. Foreign investors sold shares worth Rs115 million, the National Clearing Company reported.