PSX sheds 814 points in topsy-turvy trading

Rising oil prices, regional tensions undermine investor sentiment

KARACHI:

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 extensive selling dragged it down by 814 points.

In the morning, trading opened in positive territory as investors bought stocks of automobile assemblers, cement firms, commercial banks, oil and gas exploration companies and oil marketing companies. However, sentiment remained fragile as repeated swings failed to establish a sustained upward move. The index was marginally higher at midday, but selling pressure subsequently intensified, pulling it close to the session's low by the close.

The bourse touched the intra-day high of 166,425.56 and low of 165,111.14 and eventually settled at 165,151.64 points, down 0.49%. 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.

KTrade Securities wrote in its market wrap that the KSE-100 index dropped 814.44 points (-0.5%) amid cautious investor sentiment and subdued trading volumes of 144 million shares. Weakness was broad-based, led by commercial banks, technology, refinery and power sectors, where Attock Refinery, Systems Ltd, Habib Bank, Hub Power and Fauji Fertiliser were the largest drags.

Meanwhile, Brent crude remained elevated at $109 per barrel, reinforcing macroeconomic uncertainty and weighing on risk appetite. "We expect the market to remain range bound, with near-term direction contingent on global oil prices, geopolitical developments and corporate earnings. A sustained recovery in trading volumes remains critical to supporting a durable market recovery," KTrade said.

Arif Habib Limited Deputy Head of Trading Ali Najib commented that the PSX witnessed a negative trading session, where the benchmark KSE-100 index declined 814 points (-0.49%) to close at 165,152. The market opened on a positive note, reaching the intra-day high of 166,426 (+460 points), before reversing course and touching the low of 165,111. Rising oil prices weighed on investor sentiment, prompting cautious trading and driving the index lower.

Among corporate results, Pakistan Oilfields reported earnings of Rs8.2 billion (EPS: Rs28.86), up 51% year-on-year, while Attock Petroleum's earnings increased 74% YoY to Rs6.64 billion (EPS: Rs53.36), supported by higher petroleum prices, inventory gains and improved other income. Attock Refinery posted a sharp 13x YoY increase in net profit to Rs18.6 billion.

"Going forward, the market may remain volatile amid rising oil prices and cautious sentiment. Selective buying could support recovery, while investors should prioritise fundamentally strong stocks and monitor geopolitical developments," Najib said.

Cumulatively, trading volumes increased to 446.8 million shares versus 370.9 million a day ago. The value of traded shares stood at Rs19.4 million. Of the 499 companies traded, 128 rose, 324 declined and 47 remained unchanged.

Cnergyico Pk was the volume leader with trading in 46.5 million shares, falling Rs0.47 to close at Rs12.41. Foreign investors bought shares worth Rs206 million, the National Clearing Company reported.