PSX loses earlier gains on profit-taking
Trading activity remained volatile at the Pakistan Stock Exchange (PSX) on Wednesday, which closed slightly lower, as a mix of investor optimism and caution prevailed.
After two days of sharp gains, including a record surge of over 10,000 points on Monday, the market saw mixed signals, driven by pre-budget uncertainty, sector-specific headwinds and profit-taking in different stocks. Earlier, trading opened on a positive note, buoyed by the strength in select blue chips. However, selling pressure emerged in the second half, when investors opted to book profit.
The KSE-100 index, which continuously fluctuated throughout the day, hit the intra-day high of 119,461 points and the low of 118,149.
Fertiliser, cement, banking and oil and gas sectors extended key support to the index gains. On the other side, a 10% month-on-month decline in car sales for April impacted investor sentiment while reports of stricter tax regulations for cement distributors weighed on construction-related stocks.
On the macro front, investor confidence got a lift from two significant developments. The International Monetary Fund (IMF) disbursed SDR 760 million ($1.023 billion) to the State Bank of Pakistan (SBP) under the Extended Fund Facility (EFF), which would be reflected in foreign currency reserves by May 16, and the MSCI's May 2025 review added three Pakistani companies namely DG Khan Cement, Maple Leaf Cement and Fauji Cement to its Frontier Markets Index, increasing the number of Pakistani firms to 26.
Arif Habib Corp MD Ahsan Mehanti wrote "stocks closed flat amid uncertainty ahead of the federal budget for FY26." Dismal car sales, which showed a 10% month-on-month decline in April, along with concerns over extensive tax regulations targeting cement distributors and rupee fluctuation played the role of catalysts in bearish close at the PSX, he added.
At the end of trading, the benchmark KSE-100 index posted a marginal loss of 39.36 points, or 0.03%, and settled at 118,536.53.
Topline Securities wrote in its review that after two consecutive sessions of a powerful bull-run, the bourse witnessed a hot-and-cold trading day, marked by heightened volatility and strategic profit-taking.
There was a tug of war between the gainers and losers. On the upside, heavyweights such as Engro Holdings, Fauji Fertiliser, Meezan Bank and United Bank led the charge, adding 470 points to the index. However, the rally lost some steam as Oil and Gas Development Company, MCB Bank, Bank AL Habib and Mari Petroleum dragged the index down by 354 points, added Topline.
Arif Habib Limited (AHL) noted that stocks closed flat following a sharp two-day rally that had lifted the benchmark index substantially. Some 42 shares closed in the green while 54 remained in the red.
Engro Holdings (+3.67%), Fauji Fertiliser (+0.97%) and United Bank (+0.92%) contributed the most to index gains, it said. JS Global analyst Muhammad Hasan Ather observed that IMF-Pakistan talks, focusing on budgetary measures and reforms, kept sentiment cautious, which resulted in selective profit-taking.
Moving forward, the market direction depended on IMF negotiations, fiscal clarity and economic policy shifts. While a favourable outcome could support further upside, any uncertainty may trigger volatility, Ather anticipated.
Overall trading volumes decreased to 609.1 million shares compared with Tuesday's tally of 684.3 million. The value of shares traded during the day stood at Rs41.9 billion.
Shares of 451 companies were traded. Of these, 207 stocks closed higher, 191 fell and 53 remained unchanged.
At-Tahur Limited was the volume leader with trading in 38.8 million shares, rising Rs4.08 to close at Rs44.84. It was followed by Fauji Cement with 36.2 million shares, gaining Rs0.33 to close at Rs47.86 and Sui Southern Gas Company with 32.4 million shares, higher by Rs3.28 to close at Rs36.07.
During the day, foreign investors sold shares worth Rs1.79 billion, the National Clearing Company reported.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
No developed framework yet to deploy large workforce in Belarus
ISLAMABAD: The Bureau of Emigration and Overseas Employment (BE&OE) has not developed any framework to assess the viability of deploying large workforce in Belarus, after signing of a Memorandum of Understanding (MOU), promising 150,000 jobs for skilled Pakistani workers. So far, there has been no public safety advisory from the Ministry of Overseas Pakistanis and Human Resource Development for Pakistani workers intended to work abroad. Details of the issue revealed that thousands of Pakistani nationals are now caught in a rising human migration crisis across Eastern Europe, using Belarus as a stepping stone to illegally enter Poland, Lithuania, and Latvia. The situation has escalated rapidly after migrants, lured by promises of overseas employment, found no real job prospects in Belarus - despite a high-profile agreement signed between Islamabad and Minsk earlier this year. The wave of migration follows Prime Minister Shehbaz Sharif's official visit to Belarus in April, during which a MOU was signed, promising 150,000 jobs for skilled Pakistani workers in sectors such as healthcare, IT, construction, and engineering. However, more than two months later, the plan remains entirely unimplemented. According to officials from the BE&OE, no framework has been developed, no licenced overseas employment promoters have been engaged, and no feasibility study has been conducted to assess the viability of deploying such a large workforce. 'There are no official channels or guidelines for sending workers to Belarus. Nothing has materialized since the agreement was signed,' confirmed a senior BE&OE officer, requesting anonymity due to the sensitivity of the matter. 'In the absence of any structured migration pathway, desperate individuals are turning to illegal routes.' Belarus, which maintains relatively relaxed visa rules for Pakistani nationals, has emerged as a preferred entry point. However, upon arrival, many migrants are met with economic hardship, rising inflation, and language barriers. With few actual job offers and no government-verified recruiters in place, migrants quickly realize they have been misled. The minimum wage of $1,100, initially cited in the bilateral agreement, appears unrealistic in a country where the average monthly salary is between $670 and $700. Resultantly, many migrants attempt illegal crossings into neighbouring countries, including Poland, Lithuania, and Latvia, often in the hope of ultimately reaching Germany. Migration experts and policy analysts, including those from the Centre for Migration Research Pakistan (CMRP), are calling on the government to act urgently. Recommendations include launching public awareness campaigns on the risks of irregular migration, engaging with EU authorities to ensure the humane treatment of detained migrants, and enforcing strict action against unlicensed recruiting agents under the Emigration Ordinance, 1979. There is also a growing demand for Pakistan's missions abroad to provide emergency assistance, including temporary shelter, legal aid, and repatriation services. Unless urgent action is taken at both diplomatic and domestic levels, thousands more may be drawn into this growing humanitarian crisis - trapped between unfulfilled promises at home and hardened borders abroad. Copyright Business Recorder, 2025
Express Tribune
2 hours ago
- Express Tribune
Tariff deal with US to boost exports: Finance ministry
Listen to article The new tariff agreement between Pakistan and the US is expected to enhance market access, strengthen trade flows and boost exports from various sectors, thereby contributing to economic growth, the Ministry of Finance said on Friday. In a press statement, the ministry expressed satisfaction over the successful conclusion of tariff-related discussions with the US, adding that as a result of talks 19% tariffs would be applicable to Pakistan's export goods entering the US market. 'This decision reflects a balanced and forward-looking approach by the US authorities, keeping Pakistan competitive relative to other South and Southeast Asian countries,' it said. 'The Ministry of Finance, in close coordination with relevant stakeholders, believes that the current tariff arrangement presents a significant opportunity to expand Pakistan's footprint in the US market,' the statement said, adding that it was essential for Pakistani exporters and trade bodies to adopt a focused marketing strategy to capitalise on the development. In addition to textile, there was substantial potential for growth in other sectors, it said, stressing that the government was committed to facilitating exporters through policy support, market intelligence and trade promotion initiatives. The ministry expressed hope about further positive engagements and close cooperation with the US in the areas of investment, AI, cryptocurrency, mines and minerals, energy and other emerging sectors.
Express Tribune
2 hours ago
- Express Tribune
PSX soars to record high above 141k
Listen to article The Pakistan Stock Exchange closed the week on a strong note on Friday as the KSE-100 index surged 1.18% to reach an all-time high of 141,035 points. The bullish momentum was driven by investor optimism following a landmark reciprocal tariff deal with the United States, under which Pakistan's exports would face a reduced 19% tariff, down from the earlier 29%. The index also drew strength from expectations of a major circular debt clearance package, with the government reportedly seeking Rs1.25 trillion in bank financing to make upcoming payments. Heavyweights such as Oil and Gas Development Company (OGDC, +9.73%), Pakistan Petroleum Limited (PPL, +7.05%), Hub Power (+4.71%) and Pakistan State Oil (PSO) led the rally, contributing a combined 1,355 points to the index. Traded volume rose to 609.7 million shares, with a total value of Rs50.6 billion, reflecting strong investor participation. 'Stocks closed at a new all-time high as investors weighed 4.1% year-on-year (YoY) inflation for July 2025,' said Ahsan Mehanti, Managing Director of Arif Habib Corp. The likely resolution of circular debt crisis amid government's approval of a Rs1.275 trillion financial restructuring plan, the US tariff deal at 19%, giving an edge over regional peers, and a reduction in fuel prices played the role of catalysts in bullish activity at the PSX, he said. At the end of trading, the benchmark KSE-100 index posted a surge of 1,644.56 points, or 1.18%, and settled at 141,034.99. Arif Habib Limited (AHL) remarked that the market witnessed a 140.5k weekly draw after briefly dipping into the 138.6k-139.4k support zone. A total of 60 stocks advanced while 39 dropped, with OGDC (+9.73%), PPL (+7.05%) and Hubco (+4.71%) driving the index gains. On the downside, Systems Limited (-2.81%), Engro Holdings (-1.07%) and Service Industries (-5.64%) were the major drags. The index posted a weekly gain of 1.3%. July's Consumer Price Index (CPI) rose to 4.1% YoY, up from 3.2% in June. In corporate developments, NexGen Auto, a Nishat Group unit, announced plans to set up a $100 million electric vehicle plant in partnership with China's Chery Automobile, with production expected to begin in October, AHL mentioned. 'Bulls dominated the trading session as the KSE-100 increased 1.18% to close at its highest-ever level at 141,035,' Topline Securities said in its review. The positivity could be attributed to news that Pakistan secured a landmark tariff deal with the US, wherein Islamabad would now face reciprocal tariffs of 19% compared to the earlier rate of 29%, it said. Apart from that, Topline added, the government would make payments to clear circular debt in the coming weeks by obtaining Rs1.25 trillion from banks, which would provide stimulus to the market. Muhammad Hasan Ather of JS Global wrote that the KSE-100 rallied as it surged 1,645 points by the close of trading. Investor sentiment soared following the US decision to impose a reduced 19% reciprocal tariff on Pakistani goods. Key sectors – cement, banks, fertiliser and energy – drove the rally, with heavyweights like Mari Petroleum and OGDC trading strongly. Looking ahead, if macroeconomic and trade conditions continue to improve, the PSX may sustain its bullish momentum in the near term, Ather said. Overall trading volumes were recorded at 609.7 million shares, compared with the previous day's tally of 577.3 million. Shares of 483 companies were traded. Of these, 199 stocks closed higher, 246 fell and 38 remained unchanged. WorldCall Telecom was the volume leader with trading in 55.1 million shares, remaining unchanged at Rs1.46. It was followed by PPL with 43 million shares, gaining Rs11.97 to close at Rs181.78 and OGDC with 37 million shares, gaining Rs22.66 to close at Rs255.67. Foreign investors sold shares worth a net Rs613.6 million, the National Clearing Company reported.
