KARACHI:
The Pakistan Stock Exchange (PSX) closed lower on Friday as cautious investor sentiment prevailed ahead of the weekend amid escalating tensions in the Middle East and rising global oil prices.
The benchmark KSE-100 index shed 555 points to settle at 153,866, with investors trimming positions due to fears of potential geopolitical developments that could impact global markets and energy prices.
Topline Securities, in its report, said that during the initial hours of trading, a range-bound activity was observed. As the day progressed, the market came under pressure and the index declined 0.36% to close at 153,866.
The selling pressure could be attributed to investors’ fear of any negative developments over the weekend, stemming from the ongoing Middle East conflict as oil prices were already hovering around $100 a barrel. The top negative contribution to the index came from Engro Holdings, Fauji Fertiliser Company, Lucky Cement, Hubco and Meezan Bank as they cumulatively wiped off 649 points, it said.
Traded value-wise, NBP (Rs937 million), Engro Holdings (Rs925 million), OGDC (Rs796 million), Hubco (Rs696 million) and Lucky Cement (Rs676 million) dominated the activity. Investor participation remained at the lower end as the traded volume and value for the day stood at 303 million shares and Rs14.7 billion, respectively, the report added.
According to Arif Habib Limited (AHL), the KSE-100 index recorded a 2.3% week-on-week decline, extending the drawdown from its recent peak at 24.5%. During Friday’s session, 37 shares advanced while 58 declined.
Major positive contributors to the index were UBL (+1.68%), Faysal Bank (+5.28%) and Pakistan Services (+5.27%). On the other hand, Engro Holdings (-3.55%), Lucky Cement (-2.09%) and Fauji Fertiliser Company (-0.75%) emerged as the biggest drags on the benchmark.
In corporate developments, Air Link Communication (+2.74%) announced plans to launch an initial public offering (IPO) of Select Technologies, its wholly owned subsidiary.
Meanwhile, on the geopolitical front, Pakistan’s prime minister pledged “full solidarity and support” for Saudi Arabia following a visit to the kingdom on Thursday as Islamabad intensifies diplomatic engagement in the Gulf region amid efforts to mediate in the widening conflict.
AHL noted that market direction in the coming weeks would largely be dictated by news flow from the Middle East, with near-term support and resistance levels seen at 144,000 and 158,000 points, respectively.
AKD Securities noted that the market remained volatile throughout the week, driven by the ongoing Middle East military conflict. The market began the week on a bearish note on Monday as oil prices surged more than 20% in intra-day trading, with Brent crossing $119 per barrel in early trading. It came in the wake of a deepening Gulf conflict with a traffic halt at the Strait of Hormuz.
However, the market largely recovered in the subsequent session, when oil prices stabilised after the announcement of the release of 400 million barrels of oil from the IEA strategic reserves, along with signals of easing sanctions on Russian oil following a call between Trump and Putin.
Moreover, the status quo in the policy rate during Monday’s Monetary Policy Committee meeting, supported by largely unchanged projections for inflation, current account and forex reserves, helped build investor confidence. Overall, the benchmark index declined 3,630 points, or 2.3% week-on-week, to close at 153,866.
During the day, shares of 472 companies were traded. Of these, 190 stocks closed higher, 205 fell and 77 remained unchanged.
Dost Steels was the volume leader with trading in 27.79 million shares, gaining Rs0.20 to close at Rs5.70. It was followed by Hascol Petroleum with 25.43 million shares, gaining Rs0.53 to close at Rs17.99 and The Bank of Punjab with 16.33 million shares, losing Rs0.46 to close at Rs27.26. Foreign investors sold shares worth Rs317 million, the National Clearing Company reported.
