KARACHI:
Pakistan Stock Exchange (PSX) kicked off September with anxiety and caution as investors walked on a tightrope and the KSE-100 index swung between gains and losses. The market struggled to find a firm footing, with risk-averse investors keeping their positions guarded amid uncertain signals.
In the morning, the KSE-100 opened on a strong note, gaining 390.40 points, or 0.22%, to reach 177,366.07 at 9:34 am. However, the momentum soon lost its vigour as investors turned cautious. The index came under sustained selling pressure and lost 508.69 points, or 0.29%, to close at 176,466.99.
Significant selling in commercial banks and cement stocks outweighed gains in technology, fertiliser and selected exploration companies. The index hit the intra-day high of 177,800.28 and low of 176,375.01. Investor sentiment remained subdued amid heightened geopolitical uncertainty and surging oil prices. The resumption of hostilities between the United States and Iran in the Middle East revived fears of supply disruptions in the key crude-producing region.
KTrade Securities equity trader Ahmed Sheraz noted that the KSE-100 index closed down by 509 points, or 0.29%. The market remained under pressure, with commercial bank and cement sectors emerging as the major negative contributors. Meezan Bank, MCB Bank, Bank Alfalah and Lucky Cement were among the key stocks that weighed on the index. However, selective buying in Systems Ltd, Engro Holdings, Engro Fertilisers and Oil & Gas Development Company provided some support and helped cushion the overall decline.
Going forward, the market may continue to witness cautious and selective trading amid prevailing geopolitical uncertainty, elevated oil prices and concerns surrounding inflation and the interest-rate outlook, Sheraz wrote.
According to JS Global analyst Mubashir Anis Naviwala, the PSX registered a cautious session, with the KSE-100 closing down 508.69 points. The index traded between 176,375 and 177,800, reflecting moderate intra-day volatility. Commercial banks remained the major drag, wiping off 490 points, while cement firms added to the pressure with a decline of 131 points. Fertiliser and technology shares provided some support, contributing +71 and +70 points, respectively. Overall, the session reflected consolidation and selective buying, where investors awaited fresh catalysts, he commented.
Arif Habib Limited (AHL) commented that the KSE-100 continued to work its way lower and was starting to move away from the 178k-180k resistance zone. Some 34 shares rose while 65 fell with Systems Ltd (+2.55%), Engro Holdings (+1.04%) and Engro Fertilisers (+2.1%) contributing the most to the index gains. On the flipside, Meezan Bank (-1.01%), MCB Bank (-1.26%) and Bank Alfalah (-2.21%) were the biggest index drags.
Meanwhile, Pakistan’s inflation rate rose faster than the street’s expectations, keeping policymakers on guard as the Middle East conflict threatened to add to cost pressures and complicate the economic outlook. The August CPI surged 11.15% while global yields and oil prices were on the rise again as news flow from the Middle East remained negative, which caused a sell-off in risk assets, AHL added.
Overall trading volumes decreased to 784 million shares compared with Monday’s total of 937 million. The value of traded shares stood at Rs37 billion.
In the ready market, shares of 498 companies were traded. Of these, 174 stocks closed higher, 292 fell and 32 remained unchanged.
Cnergyico Pk topped the volumes chart with trading in 191.7 million shares, losing Rs0.46 to close at Rs15. Foreign investors sold shares worth Rs109.6 million, the National Clearing Company reported.
