KARACHI:
The Pakistan Stock Exchange (PSX) concluded Tuesday’s session with modest gains after an early surge was curtailed by profit-taking and geopolitical concerns, which largely erased initial optimism regarding a potential US-Iran ceasefire.
The benchmark KSE-100 index reached an intra-day peak of 178,370.46, surging 2,442 points before retreating to a low of 176,062.70. It ultimately settled at 176,133.57, marking an increase of 205.83 points, or 0.12%, from the previous session’s close.
Market sentiment initially improved following reports of potential mediation efforts and backchannel diplomacy between Washington and Tehran, driving the index up by 1,902.30 points (1.08%) by 9:39 am. However, the rally lost momentum as investors became cautious due to the lack of concrete geopolitical breakthroughs, leading to profit-taking and a reduction in new long positions.
JS Global analyst Nawaz Ali noted that while expectations of a ceasefire boosted sentiment and kept the market largely in the green, profit-taking occurred at elevated levels as investors hesitated to enter new long positions without definitive geopolitical developments.
Ahmed Sheraz of KASB KTrade described the session as highly volatile, noting that while the benchmark index opened strongly and saw an intra-day rally exceeding 2,000 points, profit-taking subsequently offset most of those gains. Sheraz indicated that investors are currently balancing optimism with caution, weighing selective buying against geopolitical uncertainties and the ongoing corporate earnings season.
Oil prices remained stable, providing little direction for the market as investors continued to monitor Middle East developments and global market trends, Sheraz added.
Market activity remained robust, with trading volumes reaching one billion shares and a total traded value of Rs35.7 billion. Lucky Cement, Engro Holdings, UBL, MCB Bank, and Meezan Bank were the primary contributors to the benchmark index’s gains. Conversely, OGDC, Cnergyico Pk, Maple Leaf Cement, Bank Alfalah, and Attock Refinery faced selling pressure, weighing on the index. Sheraz predicted continued volatility as the market awaits corporate earnings reports and monitors global oil prices and geopolitical shifts.
Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL), suggested that market gains were capped by speculation regarding a potential deadlock between Pakistan and the IMF concerning the Rs1.7 trillion gas-sector circular debt, as well as uncertainty surrounding the refinery policy.
Najib further noted that limited financing appetite among local banks also impacted sentiment. In terms of index contribution, Lucky Cement, Engro Holdings, UBL, MCB Bank, and Meezan Bank added a combined 290 points, while OGDC, Cnergyico Pk, Maple Leaf Cement, Bank Alfalah, and Attock Refinery erased 164 points.
According to Najib, any signs of de-escalation between the US and Iran could bolster investor confidence, whereas delays in IMF-driven reforms may maintain a cautious market environment. However, attractive stock valuations and the current earnings season may continue to offer selective buying opportunities.
Overall trading volumes significantly increased to one billion shares, up from Monday’s 675.9 million, with a total traded value of Rs35.7 billion.
In the ready market, 494 companies were traded: 268 stocks closed higher, 191 closed lower, and 35 remained unchanged. Cnergyico Pk led in volume with 263.6 million shares traded, closing down Rs0.65 at Rs9.96. According to the National Clearing Company, foreign investors purchased shares worth Rs1.29 billion.