PSX edges up 120 points amid profit-taking

Morning gains evaporate as cautious sentiment emerges over oil supply risks

KARACHI:

 

Pakistan Stock Exchange (PSX) struggled to hold on to early gains on Wednesday as a cautious tone emerged in the latter half, but still late recovery helped the benchmark index close marginally higher.

The KSE-100 index opened in positive territory but turned volatile later, when profit-taking erased most of the morning gains. It settled 120.30 points, or 0.07%, higher at 168,580.41 after hitting the intra-day peak of 169,271.99 and the low of 168,065.87.

Market sentiment was influenced by hopes of talks between the government and PTI, although the opposition party had so far described the prime minister's proposal as merely an offer and called for a formal approach to its parliamentary leaders. The prospect of political engagement provided some support, but failed to prevent the market from losing momentum as the session progressed.

The market also tracked global developments, with Brent crude rising above $100 a barrel amid continuing Middle East supply risks and a storm heading towards oil-producing regions in the United States.

According to KASB KTrade equity trader Ahmed Sheraz, the KSE-100 index closed marginally higher by 120 points (+0.07%) in a mixed and cautious session with 244 million shares traded. Sector-wise, oil & gas and fertiliser came under pressure, while technology stocks lent support. Mari Energies, Meezan Bank and Lucky Cement closed negative, whereas UBL, Systems, Pakistan State Oil and PTCL ended in the black. "The muted index performance reflected a lack of clear direction despite healthy market activity," he said.

"Going forward, elevated oil prices are the key overhang, with Brent trading between $101 and $103 a barrel, raising concerns for Pakistan as an oil-importing economy. A prolonged uncertainty around the Strait of Hormuz could keep volatility high, while a relatively cooler domestic political environment offers some relief as government-opposition talks seem to be happening again," Sheraz wrote.

Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib observed that the PSX witnessed a consolidation session on Wednesday, where the KSE-100 gained 120 points (+0.07%). The market initially carried forward Tuesday's positive momentum, with the benchmark touching the intra-day high of 169,272 (+812 points; +0.48%). However, profit-taking emerged at higher levels, particularly around the 169k mark, eroding most of the earlier gains and resulting in a largely flattish close.

"The session reflected a cautious approach by investors following the recent recovery," he said. UBL, Systems, PSO, PTCL and K-Electric added 301 points to the index, while Mari, Meezan Bank, Lucky Cement, Hub Power and OGDC erased 187 points.

"Going forward, the KSE-100 may sustain its recovery if oil prices remain subdued and Middle East risks ease, though geopolitical uncertainty may keep volatility elevated. 170k remains the key psychological level, with focus on oil prices and institutional flows," Najib added.

Overall trading volumes rose to 586.9 million shares from Tuesday's tally of 432 million,