PSX ends with mild losses, lacks triggers

The benchmark KSE-100 index closed over 200 points lower at the Pakistan Stock Exchange (PSX) on Thursday as the market remained largely range bound amid a lack of fresh positive triggers.

The index shed 0.73% for the week. Market breadth remained weak, with more stocks declining than advancing. At the close of trading, the KSE-100 posted a decline of 206.60 points, or 0.11%, and settled at 180,104.61.

Arif Habib Limited (AHL), in its report, noted that the KSE-100 closed down by 206.60 points at the end of a week that saw the index drop 0.73%. Breadth remained weak as 38 shares advanced while 61 fell.

Fauji Fertiliser Company (+0.62%), Service Industries (+3.91%) and HBL (+0.65%) led the index gains, while Engro Holdings (-0.94%), Systems Ltd (-1.59%) and Meezan Bank (-0.55%) were the major drags. Cnergyico topped the gainers' list with a 4.35% rise, followed by Service Industries and Pakistan Services.

Separately, the FY26 budget deficit came in at Rs3,313 billion, or 2.6% of GDP – the lowest ratio on record. External risks continue to weigh on sentiment. Iran has reorganised its military for a more aggressive posture as talks with the United States remain stalled, as per AHL. Progress on the Strait of Hormuz is elusive, and mediation efforts by Pakistan and Qatar have yet to yield a durable breakthrough.

"Technical support for the coming week is placed at 178,000-180,000, with upside targets still at 190,000. The index is expected to stay range bound until clearer external signals emerge," it added.

Ahmed Sheraz of KASB KTrade observed that the KSE-100 index closed at 180,105, down 207 points (-0.11%) day-on-day, as the market remained largely range bound amid a lack of fresh positive triggers. Trading activity remained strong, with 388 million shares exchanged, while volume leaders included Cnergyico, The Bank of Punjab, K-Electric and SSGC with 247 million, 16 million, 10 million and 8.7 million shares, respectively.

Market contributions remained mixed and came from across multiple sectors. On the positive side, FFC led with a contribution, followed by SRVI, and HBL. On the negative side, ENGROH was the largest drag, followed by SYS and HMB.

"Going forward, the market is likely to remain range bound as investors await a fresh catalyst. Oil prices continue to hover around $87-90 per barrel, keeping sentiment cautious, while the absence of a clear positive trigger is limiting aggressive buying interest," he said. "A sustained move beyond the prevailing trading range will likely require a meaningful macroeconomic, corporate or geopolitical catalyst."

With Friday being a public holiday on account of Independence Day, the market will remain closed for a long weekend. Investors are therefore likely to adopt a cautious stance, with direction expected to emerge once trading resumes and a fresh catalyst enters the market.

Overall trading volumes were recorded at 891.33 million shares compared with the previous session's tally of 744.24 million. The value of shares traded during the day was Rs36.69 billion.

Shares of 495 companies were traded. Of these, 197 stocks closed higher, 269 fell, and 29 remained unchanged.

Cnergyico Pk was the volume leader with trading in 247 million shares, gaining Rs0.57 to close at Rs13.68. It was followed by Beco Steel with 104 million shares, losing Rs0.46 to close at Rs5.11, and Pakistan Refinery with 40 million shares, gaining Rs5.93 to close at Rs76.73.

Foreign investors sold shares worth Rs802 million, the National Clearing Company reported.