PSX tests resistance after sustained recovery

Extends rally with rise of 769 points as KSE-100 approaches 167,000

KARACHI:

Pakistan Stock Exchange (PSX) extended its recovery on Thursday, with the benchmark KSE-100 index gaining almost 770 points to close near 166,190, as renewed buying in index-heavy stocks lifted sentiment. However, the market approached a key resistance zone of 167,000-168,000 points, while fluctuations in international oil prices and geopolitical uncertainties remained key risks.

At the close of trading, the KSE-100 index posted a rise of 768.66 points, or 0.46%, and settled at 166,186.17.

Arif Habib Limited (AHL) note, accompanied by a KSE-100 daily chart, reported that the benchmark index gained 0.46% on the day and continued to approach the 167,000-168,000 resistance zone. Breadth was positive, with 71 shares advancing against 29 decliners. PTCL (up 7.62%), Fauji Fertiliser Company and Systems Ltd contributed the most to the index's growth, while Engro Holdings, Mari Energies and Service Industries were the principal drags.

The commentary also noted that the ongoing rally was now testing the first significant resistance area for bulls and that, heading into the final session of the week, the KSE-100 stood 0.54% lower. Geopolitical context was included, referencing strains facing Saudi Crown Prince Mohammed bin Salman amid Houthi attacks on Saudi infrastructure and related regional developments.

Topline's market review observed that the KSE-100 index closed higher on Thursday, gaining 769 points (+0.46%) to settle at 166,186. The index traded within a range of 165,613-166,877, maintaining positive momentum throughout the session amid renewed buying interest.

The market's recovery was supported by selective accumulation in key index-heavy stocks following recent correction. However, investor sentiment remained cautious amid fluctuations in international oil prices, geopolitical developments, domestic macroeconomic indicators and institutional fund flows.

PTCL, FFC, HUBC, OGDC and SYS emerged as major contributors to the index's gains, collectively adding approximately 340 points. Market activity remained modest with total volumes reaching 518 million shares, while traded value stood at Rs23.57 billion, Topline said.

KTrade also noted that the KSE-100 extended its positive momentum, closing at 166,186 points, up 0.46% day-on-day, as sentiment improved following a decline in international oil prices. Brent crude traded around $104-105/barrel during the day.

Commercial banks, technology, fertiliser and cement stocks provided strong support to the index. PTCL, FFC, SYS, HUBC and OGDC were among the key contributors to the market momentum. Activity remained healthy, with approximately 175 million shares traded, where CNERGY, PTCL and KEL led the volumes chart with around 63 million, 14 million and 11 million shares, respectively.

"Going forward, investor focus is shifting towards the upcoming results season, with September-quarter result notices beginning to emerge. However, elevated international oil prices remain a key risk to market sentiment," KTrade said.

Overall trading volumes were recorded at 517.6 million shares compared with the previous session's tally of 585.9 million. The value of shares traded during the day was Rs23.57 billion.

In the ready market, shares of 501 companies were traded. Of these, 292 stocks closed higher, 169 fell and 40 remained unchanged.

Cnergyico Pk was the volume leader with trading in 62.8 million shares, gaining Rs0.09 to close at Rs12.80. It was followed by Pakistan Refinery with 43.4 million shares, gaining Rs4.57 to close at Rs103.76 and WorldCall Telecom with 19.5 million shares, gaining Rs0.02 to close at Rs0.98. Foreign investors were sellers of a net Rs194.4 million worth of shares, according to the National Clearing Company.