KSE-100 Index surrenders early gains as banks and cement stocks lead losses; oil gains on renewed US-Iran hostilities
KARACHI:
The Pakistan Stock Exchange (PSX) began September on Tuesday with investors walking on a tightrope, as anxiety and caution kept the KSE-100 Index swinging between gains and losses. The index, under sustained selling pressure, eventually tumbled 508.69 points, or 0.29%, to settle at 176,466.99.
The decline came as heavy selling in commercial banks and cement stocks outweighed gains in technology, fertiliser and selected exploration companies.
The market struggled to find firm footing in a jittery session, with risk-averse investors keeping their positions guarded amid uncertain signals. In the morning, the benchmark KSE-100 Index opened strongly and extended gains to 390.40 points, or 0.22%, to reach 177,366.07 at 9:34am, however, the momentum soon faded as investors turned cautious.
The index recorded an intraday high of 177,800.28 and a low of 176,375.01 while trading activity remained robust.
Investor sentiment remained subdued throughout the session amid heightened geopolitical uncertainty, with oil prices gaining on Tuesday as the resumption of hostilities between the United States and Iran in the Middle East renewed fears of supply disruptions from the world’s key crude-producing region.
The rise in global oil prices also added to concerns over the domestic economic outlook, keeping investors cautious and limiting the market’s ability to sustain its early gains.
Read: PSX slips 721 points over mounting ME tensions
KTrade Securities equity trader Ahmed Sheraz noted that the KSE-100 closed at 176,466 points, down 508 points or 0.29% day-on-day.
The market remained under pressure, with commercial banks and cement sectors emerging as the major negative contributors. Meezan Bank, MCB Bank, Bank Al Falah and Lucky Cement were among the key stocks weighing on the index. However, selective buying in Systems, Engro Holdings, Engro Fertiliser and the Oil and 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. Investors are likely to remain stock-specific, while any easing in external tensions or improvement in macro visibility could support a recovery in sentiment, Sheraz wrote
Overall, trading volume decreased to 784.4 million shares during the session, compared with Monday’s total of 937.2 million. The value of traded shares stood at Rs37.4 billion while shares of 498 companies were traded in the ready market. Of these, 174 stocks closed higher, 292 fell and 32 remained unchanged.
Cnergyico Pk continued to top the the volume chart with trading in 191.8 million shares, losing Rs0.46 to close at Rs15.00.
