Profit-taking erases early gains at PSX

KSE-100 index slips below 165,000; auto sales fall 3% month-on-month

KARACHI:

An early rally at the Pakistan Stock Exchange (PSX) fizzled out on Tuesday as investors resorted to profit-taking at higher levels, pulling the benchmark KSE-100 Index below the key psychological level of 165,000 points amid a mixed and volatile session.

The index touched an intraday high of 166,070.48 before falling to a low of 164,773.67, eventually settling at 164,776.44, down 347.97 points, or 0.21%.

The market opened on a positive note following the previous session's sell-off, with the KSE-100 Index rising 558.25 points, or 0.34%, to 165,682.66 in early trading. By midday, it was up 470.14 points, or 0.28%, at 165,594.55, supported by buying in automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies.

According to KTrade Securities, the KSE-100 opened on a positive note as Brent crude traded below $105 a barrel, lifting early sentiment and pushing the index over 700 points into the green.

However, as the session progressed, profit-taking across the board erased gains despite oil prices hovering near $105 a barrel. Consequently, the index closed at 164,776, down 348 points (-0.21%) day-on-day.

Selling pressure was concentrated in commercial banks, technology, and oil and gas stocks, with UBL, HBL, Lucky Cement and Mari Energies weighing on the index. Fertilisers were the only sector to offer some support.

Going forward, KTrade noted that cautious trading is likely to persist as buyers remain selective, accumulating on dips rather than aggressively chasing prices. A sustained recovery will depend on improved participation and developments on the geopolitical front, particularly their implications for global oil prices and domestic investor sentiment, it added.

Deputy Head of Trading at Arif Habib Limited (AHL) Ali Najib said profit-taking at higher levels curtailed the recovery and pushed the benchmark into negative territory.

On the sectoral front, sales of cars, light commercial vehicles, vans and jeeps fell 3% month-on-month and 12% year-on-year to 15,100 units in September 2026. However, cumulative sales during the first quarter of FY27 rose 19% year-on-year to 50,500 units.

Among index constituents, Fauji Fertiliser Company, Meezan Bank, Fauji Cement, Fatima Fertiliser and AGP collectively contributed 112 points to the index. Pakistan Telecommunication Company, United Bank, Habib Bank, Lucky Cement and Mari Energies exerted downward pressure, collectively erasing 343 points.

Najib said the market was likely to remain volatile amid domestic political uncertainty, with downside risks offset by selective value buying. He advised investors to remain cautious, prioritise fundamentally strong stocks and avoid aggressive positions until sentiment stabilised.

Overall, trading volume increased to 383.7 million shares versus Monday's total of 362.9 million. The value of traded shares stood at Rs13.1 billion. Shares of 500 companies were traded in the ready market. Of these, 223 stocks closed higher, 226 fell and 51 remained unchanged.

LSE Financial Services was the volume leader with trading in 32.3 million shares, losing Rs0.16 to close at Rs1.03. Foreign investors sold shares worth Rs644.2 million, the National Clearing Company reported.