PSX records thin gains in volatile session

KARACHI:

Pakistan Stock Exchange (PSX) staged a late recovery on Monday to close marginally higher, reversing an earlier decline as investors weighed hopes of diplomatic progress in the Middle East against selling pressure across key sectors.

The benchmark KSE-100 index edged higher by 154.81 points, or 0.09%, to settle at 166,564.07, after remaining under pressure for much of the session. In the morning, the market opened on a cautious note, with selling emerging soon and the index slipping to 166,169.41 at 9:34 am, down 239.84 points, or 0.14%.

The selling pressure deepened during the day, pulling the index down to 165,776.85 at 12:29 pm, down 632.40 points, or 0.38%. However, the market subsequently recovered, where the benchmark touched the intra-day high of 166,989.76 and settled in positive territory. The market's positive close came amid a more than 4% decline in global oil prices as renewed hopes of diplomatic progress on ending the US-Israel war with Iran eased concerns over energy costs and pressure on Pakistan's import bill.

According to Arif Habib Limited (AHL), the PSX made a flat start to the week with the KSE-100 trading on both positive and negative sides. Some 41 shares rose while 58 fell with Mari Energies (+3.15%), Fauji Fertiliser (+0.92%) and Engro Holdings (+1.57%) contributing the most to the index's gains. Conversely, Attock Refinery (-10%), OGDC (-1.66%) and PSO (-2.33%) were the biggest index drags.

All refineries hit their lower limits as the government shifted the impact of higher petrol import costs onto local refineries to avoid passing it on to consumers. The ex-refinery motor spirit (MS) price rose Rs15.13 to Rs282.26 per litre, but it was offset by a reduction of Rs14.71 in the petroleum levy and a reduction of Rs0.42 in the inland freight equalisation margin (IFEM), leaving the ex-depot price unchanged at Rs377.91 per litre.