PSX retreats from record on profit-taking
Listen to article
The Pakistan Stock Exchange (PSX) experienced a turbulent session on Thursday, where the benchmark KSE-100 index hit a record intra-day high at 126,718 before reversing course to close modestly lower.
The day saw intense swings, reflecting both optimism fuelled by post-budget clarity and renewed pressure from geopolitical tensions.
Early gains were supported by improved investor sentiment, driven by the budget announcement, robust remittances and monetary policy expectations. However, the rally lost steam as the session progressed, with profit-taking in overheated stocks and geopolitical uncertainty, surrounding the Middle East, undermining sentiment.
Global equity selloffs, a slump in crude oil prices and a weakening rupee added to investor concerns.
Arif Habib Corp MD Ahsan Mehanti stated that stocks closed under pressure on geopolitical uncertainty and post-budget profit-taking in overbought shares. "The rout in global equities on Middle East tensions, a slump in international crude oil prices and a weak rupee on contracting exports were among the key factors behind bearish close of the market," he added.
At the end of trading, the benchmark KSE-100 index lost 259.56 points, or 0.21%, and settled at 124,093.12.
KTrade Securities noted that the bourse experienced a volatile session as the KSE-100 index fluctuated between the high of 126,718 and low of 123,846, ultimately closing down 0.21% at 124,093.
Initial gains were driven by positive market sentiment following the FY26 budget, perceived as favourable for capital markets. However, rising geopolitical tensions involving Iran, Israel and the US prompted heavy profit-taking later in the day, it said.
Negative contribution mainly came from sectors such as investment banks, oil and gas, and fertiliser, where notable contractions were seen in Engro Holdings, Fauji Fertiliser, Pakistan Petroleum and OGDC.
Cement stocks saw strong buying before profit-taking set in. Given the ongoing regional uncertainties, the market outlook is likely to remain cautious, added KTrade.
Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib wrote that the PSX witnessed a dramatic session, which led to a lower close for the KSE-100 index after hitting a record intra-day high.
The market opened strong, building on the previous session's bullish momentum and breaking key psychological levels of 125,000 and 126,000. However, profit-taking in the latter half erased gains and dragged the index into the negative territory.
The pullback comes after several sessions of aggressive rallying, largely driven by improved macroeconomic indicators and declining cut-off yields in the T-bill auction, Najib said.
Topline Securities mentioned in its review that the stock market ended on a negative note, weighed down by cautious investor sentiment and profit-taking. It attributed the downtrend largely to declines in shares of Engro Holdings, Fauji Fertiliser, Pakistan Petroleum, OGDC and Bank Alfalah, which erased 401 points from the index.
In contrast, support came from Pakgen Power, United Bank, Bank AL Habib, Lucky Cement and DG Khan Cement, which added 347 points.
JS Global analyst Mubashir Anis Naviwala said that the index hit a high of 126,718 before profit-taking dragged it down by 260 points. The analyst advised investors to watch for key support levels and use dips to accumulate stocks with focus on fertiliser, cement and banking sectors for near-term opportunities.
Overall trading volumes decreased to 1.02 billion shares compared with Wednesday's tally of 1.04 billion. The value of shares traded was Rs50.5 billion. Shares of 474 companies were traded. Of these, 170 stocks closed higher, 270 fell and 34 remained unchanged.
Sui Southern Gas Company was the volume leader with trading in 55.9 million shares, rising Rs0.78 to close at Rs41.92. It was followed by Fauji Cement with 50.6 million shares, gaining Rs0.49 to close at Rs47.36 and WorldCall Telecom with 49.3 million shares, falling Rs0.08 to close at Rs1.37. Foreign investors sold shares worth Rs685.8 million, the National Clearing Company reported.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
8 hours ago
- Express Tribune
KSE-100 index plummets 2,186 points, amid geopolitical tensions
The Pakistan Stock Exchange (PSX) experienced a notable decline on Friday, with the KSE-100 index falling by 1,949.56 points, closing at 122,143.56 amid escalating geo-political tensions that followed Israel's attack on Iran earlier today. The KSE 100 Index ended the day's session registering a decline of 1.57%. The index recorded a high at 123,058.06 points during the day, while the low reached 121,604.59. Trading volume stood at 237,086,212 shares, with a total value of 19,718,824,728. The index had previously closed at 124,093.12. Israel launched an attack on Iran todaytargeting the country's nuclear facilities under the pretext of preventing Tehran from developing atomic weapons. The attack, that killed Iranian nuclear scientists and targetted the top 20 military commanders despite Iran's long-standing insistence that its nuclear-related activity is for peaceful purposes. Israel, which is believed to be the only nuclear armed state in the Middle East, has declared a state of emergency in anticipation of retaliation by Tehran. Earlier on Thursday, the PSX saw a turbulent session, with the benchmark KSE-100 index hitting a record intra-day high of 126,718 before reversing course and closing modestly lower. At the end of trading, the benchmark KSE-100 index lost 259.56 points, or 0.21%, and settled at 124,093.12. The market volatility continues to reflect broader uncertainties tied to global events. Early gains were supported by improved investor sentiment, driven by the budget announcement, robust remittances and monetary policy expectations. However, the rally lost steam as the session progressed, with profit-taking in overheated stocks and geopolitical uncertainty surrounding the Middle East, undermining sentiment. Arif Habib Corp MD Ahsan Mehanti stated that stocks closed under pressure on geopolitical uncertainty and post-budget profit-taking in overbought shares. "The rout in global equities on Middle East tensions, a slump in international crude oil prices and a weak rupee on contracting exports were among the key factors behind the bearish close of the market," he added. JS Global analyst Mubashir Anis Naviwala said that the index hit a high of 126,718 before profit-taking dragged it down by 260 points. The analyst advised investors to watch for key support levels and use dips to accumulate stocks with focus on fertiliser, cement and banking sectors for near-term opportunities.
Business Recorder
15 hours ago
- Business Recorder
Selling pressure at PSX as geopolitical tensions flare after Israeli strike on Iran
Selling pressure was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index losing nearly 2,500 points during the opening minutes of trading on Friday, amid an escalating geopolitical situation after Israel conducted a military strike on Iran. At 9:50am, the benchmark index was hovering at 122,533.32 level, amid a decrease of 1,559.80 points or 1.26%. Across-the-board selling pressure was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including OGDC, PPL, PSO, MARI and HUBCO traded in the red. On Thursday, the PSX witnessed a modest correction, easing after a strong rally earlier in the week fueled by investor optimism surrounding the federal budget. The benchmark KSE-100 Index declined by 259.56 points, or 0.21 percent, closing at 124,093.12 points. Globally, stocks dived in early Asian trade on Friday, led by a selloff in US futures, while oil prices jumped after Israel conducted a military strike on Iran, sending investors scurrying to safe havens such as gold and the Swiss franc. The Israeli attack raises the risk of a fresh escalation in tensions in the Middle East, a major oil producing region, and comes at a time of heightened pressure on the global economy and financial markets from US President Donald Trump's shakeup of trade policies. Market reaction was swift, with U.S. S&P E-mini futures slumping 1.5% as of 0055 GMT and Nasdaq futures skidding 1.7%. Japan's Nikkei lost 1.4% and South Korea's KOSPI slipped 1.2%. Brent crude jumped more than 6% to $73.56 per barrel. Gold climbed 1% to about $3,419 per ounce. Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran, after what it called a 'preemptive strike' over Iran's nuclear programme. Explosions were heard northeast of Iran's capital Tehran early on Friday, the state-run Nour News said. Two US officials who spoke on condition of anonymity said Israel had begun carrying out strikes on Iran and there was no US assistance or involvement in the operation. This is an intra-day update
Express Tribune
20 hours ago
- Express Tribune
Reserves hit 3-year high at $16.9b
A A key concern influencing the MPC's cautious stance is the recent rebound in international crude oil prices due to heightened geopolitical tensions in the Middle East and the possibility of a US-China trade agreement. photo: file Listen to article Pakistan's total liquid foreign exchange reserves have surged to $16.88 billion — the highest level in 163 weeks, last recorded on April 16, 2022. Speaking to The Express Tribune, Deputy Head of Trading at Arif Habib Limited (AHL), Ali Najib said, "Of this, the State Bank of Pakistan (SBP) holds $11.68 billion, marking a 20-week high last seen on January 20, 2025, while commercial banks maintain reserves of $5.20 billion." The SBP's foreign exchange reserves rose by $167 million during the week ended June 6, 2025, according to data released by the central bank on Thursday. This represents a weekly increase of $277 million and a fiscal year-to-date (FYTD) rise of $2.88 billion, he said in his commentary. As a result, the country's import cover has improved to 1.94 months, up from 1.91 months previously. The surge in reserves is attributed to stronger export performance, robust remittance inflows, and financial support from the International Monetary Fund (IMF) as well as bilateral partners. "This boosts investor confidence, strengthens the rupee, and enhances the country's ability to pay for imports and service debt," said Najib. This improvement also lowers default risk and supports inflation stability, contributing positively to the overall macroeconomic environment. The central bank announced that the Monetary Policy Committee (MPC) of SBP will meet on Monday, June 16, 2025, to decide about the monetary policy. In a poll conducted by Topline Securities, 56% of market participants expect the central bank to maintain the current policy rate in the upcoming meeting, a notable increase from 31% in the previous poll. Meanwhile, 44% anticipate a policy rate cut of at least 50 basis points (bps). Within this group, 19% foresee a 50bps reduction, while 25% expect a more aggressive cut of 100bps. Despite the market's mixed expectations, Topline Research believes that the central bank has room for a further cut of around 100bps, considering that average inflation for FY26 is projected to remain between 6-7%. This would translate into a real interest rate of 400-500bps — well above the historical range of 200-300bps — assuming a policy rate of 11%. However, the SBP is widely expected to maintain a status quo in its upcoming monetary policy meeting amid persisting uncertainties on both domestic and global fronts. A key concern influencing this cautious stance is the recent rebound in international crude oil prices, which have surged to the $68-70 per barrel range due to heightened geopolitical tensions in the Middle East and the possibility of a US-China trade agreement. Given that global oil prices have historically played a significant role in driving domestic inflation, this development is likely to compel the central bank to adopt a wait-and-see approach. Moreover, the potential inflationary impact of upcoming domestic adjustments — such as anticipated notifications regarding gas and electricity tariff hikes — remains unassessed and yet to be absorbed by the market. These factors, combined, support the likelihood of the SBP keeping its policy rate unchanged in the near term. Minutes from the last MPC meeting held on May 5, 2025, revealed that eight out of nine members favoured a 100-basis points rate cut. However, since that easing, yields on the six-month Karachi Interbank Offered Rate (KIBOR) and six-month T-bills have increased by 88-99 basis points. Currently, the six-month KIBOR and T-bills stand at 11.09% and 10.95%, respectively. As per the Topline survey, inflation is expected by most respondents to average 6-8%, with the rupee projected to settle between Rs280-290 per US dollar by year-end. Meanwhile, the rupee depreciated for a second straight session, closing at 282.67 per dollar, while domestic gold prices jumped by Rs4,000 per tola to Rs356,900, following international gains.
