PSX sheds 814 points amid topsy-turvy trading

Rising oil prices, regional tensions unsettle investor sentiment

KARACHI:

The Pakistan Stock Exchange (PSX) closed lower on Tuesday after a topsy-turvy session, with the benchmark KSE-100 Index swinging between gains and losses before broad-based selling dragged it down by 814.44 points.

The index touched an intraday high of 166,425.56 and a low of 165,111.14, eventually settling at 165,151.64 points, down 0.49% from the previous close of 165,966.08 points. 

The session had opened in positive territory and saw buying in automobile assemblers, cement, commercial banks, oil and gas exploration companies and oil marketing companies. However, sentiment remained fragile, with repeated swings failing to establish a sustained upward direction. The benchmark was still marginally higher at midday, but selling pressure subsequently intensified, pulling it close to the session’s low by the close

Persistent jitters kept investors on edge as broad-based sell-off overshadowed intermittent buying in key sectors.

Internationally, oil prices advanced, with Brent crude hovering around a five-month high as traders priced in a geopolitical risk premium following Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf. The developments kept geopolitical risks in focus amid concerns over potential disruptions to regional energy supplies.

Read: PSX slips 454 points as investors struggle to find direction

KTrade Securities wrote in its market wrap that the KSE-100 Index declined 814 points (-0.5%) to 165,152 on Tuesday, amid cautious investor sentiment and subdued trading volumes of 144 million shares. It added that it expected the market to remain range-bound amid cautious sentiment, with near-term direction contingent on global oil prices, geopolitical developments and corporate earnings.

A sustained recovery in trading volumes remains critical to broadening market participation and supporting a durable market recovery, KTrade said.

Weakness was broad-based, led by commercial banks, technology, refineries and power. Attock Refinery, Systems, Habib Bank, Hub Power and Fauji Fertiliser were the largest stock-specific drags. Meanwhile, Brent crude remained elevated at $109 per barrel, reinforcing macroeconomic uncertainty and weighing on risk appetite.

Cumulatively, trading volume increased to 446.8 million shares versus 370.9 million recorded a day ago, while the value of traded shares stood at Rs19.5 million. Of the 499 companies traded, 128 advanced, 324 declined and 47 remained unchanged.

Cnergyico PK was the volume leader with trading in 46.6 million shares, falling Rs0.47 to close at Rs12.41.