PSX inches up as investors stay cautious
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The Pakistan Stock Exchange (PSX) closed modestly higher on Tuesday, posting a gain of 112 points, as the KSE-100 index oscillated in a narrow band throughout the day.
Investors were wary ahead of the budget presentation, although cement stocks rose, driven by hopes for announcement of a real estate package in the federal budget.
Analysts noted that there was some mid-session pressure due to investor concerns over the lack of agreement with the International Monetary Fund (IMF) on budgetary targets and subsidies.
K-Electric was the volume leader for the second consecutive day, with 267 million shares changing hands, following approval of its multi-year distribution tariff for the period FY24 to FY30.
Ahsan Mehanti of Arif Habib Corp commented that stocks staged a recovery amid speculation in the pre-budget session. Hopes for a real estate package in the federal budget sparked a rally in cement stocks.
Investor concerns over the IMF's disagreement regarding key budgetary targets and subsidies and rupee fluctuation caused mid-session pressure. Moreover, the government's measures for increasing tax collection to slash the fiscal deficit aided the positive close, he said.
At the end of trading, the benchmark KSE-100 index recorded an increase of 111.79 points, or 0.09%, and settled at 118,332.91.
According to Topline Securities, the market saw a range-bound session, with the index moving within a confined band due to the rollover pressure and uncertainty surrounding the upcoming budget. It touched the intra-day high of 587 points and low of 77 points before settling at 118,333, up 112 points.
The positive momentum was mainly driven by Meezan Bank, Systems Limited, Pakgen Power, Pakistan Petroleum and DG Khan Cement, which added 223 points to the index, Topline said.
In its commentary, Arif Habib Limited (AHL) remarked that Tuesday's session was largely flat ahead of the May 28 holiday.
Some 48 shares rose while 50 fell. Meezan Bank (+1.61%), Systems Limited (+1.22%) and Pakgen Power (+6.77%) contributed the most to index gains while UBL (-1.78%), Hub Power (-0.82%) and Pakistan Services (-3.5%) were the biggest drags, it said.
AHL added that headline inflation for May 2025 was projected to rise to 3.04% year-on-year, an uptick from 0.3% in April, but still significantly lower than the 11.8% reading in May 2024. The sharp moderation reflects a strong base effect and easing inflationary pressures across key categories such as food and transportation.
Moreover, cement was the standout sector where Flying Cement (+10%) Dewan Cement (+8.29%) and DG Khan Cement (+3.23%) were the major gainers. "The market appears to be biding time for a positive catalyst to breach 120,000 on a sustained basis," AHL said.
Analyst Ali Najib commented that "consolidation continues ahead of the budget," adding that the PSX had a stable day as the KSE-100 index floated in a narrow range and ended the day on a flat note at 118,333, reflecting a gain of 112 points. He noted that investors were likely to exercise caution in the coming sessions amid the ongoing macroeconomic uncertainty.
Overall trading volumes increased to 690.4 million shares compared with Monday's tally of 635.5 million. The value of shares traded during the day was Rs23.8 billion.
Shares of 459 companies were traded. Of these, 211 stocks closed higher, 210 fell and 38 remained unchanged.
K-Electric was the volume leader with trading in 267.6 million shares, gaining Rs0.17 to close at Rs5.89. It was followed by WorldCall Telecom with 31.6 million shares, gaining Rs0.03 to close at Rs1.30 and PTCL with 20 million shares, gaining Rs0.21 to close at Rs24.28. During the day, foreign investors sold shares worth Rs876.7 million, the National Clearing Company reported.
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