KARACHI:
The Pakistan Stock Exchange (PSX) closed lower on Tuesday as investors maintained a cautious stance during lackluster trading, with absence of strong catalysts triggering profit-taking across key sectors.
The market initially gained, with buying interest seen in cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation stocks. The benchmark index rose to an intraday high of 179,405.56 points, but momentum failed to sustain as selling pressure emerged later in the session. The KSE-100 index fell to an intraday low of 177,674.37 points before settling at 177,692.92, down 778.95 points or 0.44%.
Investors remained largely on the sidelines awaiting fresh triggers to confirm the sustainability of Pakistan’s improving macroeconomic outlook. Market participants cited profit-booking following recent index gains and caution ahead of upcoming economic and fiscal developments, though trading activity remained healthy as investors continued repositioning portfolios.
Sentiment stayed cautious amid regional geopolitical tensions affecting global markets and concerns over energy price volatility.
According to KTrade Securities, the KSE-100 closed at 177,692 points, down 778 points or 0.44% in a lackluster session as investors awaited meaningful near-term catalysts. Trading activity was reasonable with 292 million shares exchanged. Commercially banks and investment banks applied the most pressure on the index. Major negative contributors included United Bank, Bank Al Habib, Engro Holdings, Fauji Fertiliser, Bank Al Falah and National Bank.
Oil and Gas Development Company (OGDC), Maple Leaf Cement and Pakistan Petroleum provided some downside support, though were insufficient to offset broader weakness. Market direction is likely to remain range-bound near-term, with investor participation expected to stay selective until fresh catalysts emerge from corporate earnings, macroeconomic developments or policy triggers, KTrade noted.
Arif Habib Limited (AHL) observed that the KSE-100 continued consolidating within the 177,000-179,500 point support zone after breaching 175,000 earlier this month. Of the 100 shares traded, 28 advanced while 72 declined. OGDC (+1.17%), Maple Leaf Cement (+2.52%) and Pakistan Petroleum (+0.7%) provided the greatest index support, while UBL (-1.86%), Bank Al Habib (-2.63%) and Engro Holdings (-0.96%) exerted the most downward pressure.
Iranian President Masoud Pezeshkian arrived in Islamabad to discuss expanded cooperation in security, trade and other areas. The State Bank of Pakistan (SBP) will announce its next monetary policy decision on July 27. Parliament has also approved the National Budget for FY27.
With Pakistan closed Thursday and Friday for Ashura holidays, the KSE-100 is down 0.69% week-on-week and trading within last week’s range, potentially forming an “inside candle” that could indicate increased volatility next week, AHL predicted.
Total trading volume decreased to 765.1 million shares from Monday’s 807.4 million. The value of traded shares reached Rs35.4 billion. In the ready market, shares of 493 companies traded, with 146 closing higher, 308 falling and 39 unchanged. K-Electric led volume with 83.5 million shares, gaining Rs0.22 to close at Rs8.42. Foreign investors sold shares worth Rs43.83 billion, according to the National Clearing Company.