PSX dips 454 points; investors remain cautious

Lack of positive cues, high oil prices, geopolitics keep key sectors under pressure

KARACHI:

Pakistan Stock Exchange (PSX) closed lower on Monday as subdued activity and persistent selling in key sectors kept investors cautious, with the benchmark index failing to sustain its recovery amid a lack of positive triggers.

The KSE-100 index shed 453.63 points, or 0.27%, to settle at 165,966.09 at the end of trading. Earlier, the session began on a weak note, when the index dropped to 166,120.90, down 298.81 points, or 0.18%, at 9:38 am, reflecting early selling pressure.

The market attempted to recover during the day, with the index climbing to the intra-day high of 166,698.46 points. However, the recovery proved short-lived and the index later touched the low of 165,918.35 before ending the session in negative territory.

Selling was observed in major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies and oil marketing companies. The broad-based pressure limited the market's ability to build on its intra-day recovery and left the benchmark below the previous close.

Investor sentiment remained fragile as the market lacked fresh positive cues that could encourage sustained buying. With selling pressure persisting across key sectors, investors remained cautious, keeping the overall tone subdued through the session.

According to KTrade Securities, the KSE-100 index declined 454 points (-0.27%) to close at 165,966 amid cautious investor sentiment and subdued volumes reaching 109 million shares. Trading activity was concentrated in Pakistan Refinery, Cnergyico Pk, TPL Trakker, WorldCall Telecom and Saif Power, while selective buying in MCB Bank, Attock Refinery, Pakistan Oilfields, TRG Pakistan and Bank Alfalah provided partial support.

Sectoral weakness was broad-based, led by commercial banks, cement firms, investment banks and technology companies, where UBL, Systems Ltd, Fauji Fertiliser and Hub Power led the decline. Meanwhile, Brent crude remained elevated above $100/barrel, resulting in macroeconomic uncertainty.

"We expect the market to remain cautious and range bound, with near-term direction contingent on global oil prices, geopolitical developments and corporate earnings. A sustained recovery in trading volumes is critical to underpinning broader market participation and a durable rally," KTraded added.

In his report, Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib mentioned that the market opened on a negative note and touched the intra-day low of 165,918 before staging a recovery to the high of 166,698. However, the recovery proved short-lived as selling pressure intensified in the second half, erasing the gains and dragging the index back towards its intra-day low by the close.

On the corporate front, Engro Fertilisers reported 3QCY26 net profit of Rs9.1 billion (EPS: Rs6.83), up 57% year-on-year (YoY), supported by strong fertiliser offtake. The company announced a cash dividend of Rs5.50/share, compared with Rs4.50/share in the same period of last year, implying an 80% payout ratio. The payout may reflect a cautious capital allocation approach amid potential liabilities.

"Going forward, the market is likely to remain volatile and range bound between 164-168k amid cautious investor sentiment and evolving macroeconomic and geopolitical developments," Najib said.

Overall trading volumes decreased to 370.9 million shares against Friday's total of 396.9 million. The value of traded shares stood at Rs19.6 billion.

Shares of 499 companies were traded in the ready market. Of these, 163 stocks closed higher, 302 fell and 34 remained unchanged.

Pakistan Refinery was the volume leader with trading in 52.9 million shares, gaining Rs1.86 to close at Rs108.81. Foreign investors sold shares worth Rs254.1 million, the National Clearing Company reported.