Stocks retreat after two-day rally

KARACHI:

Pakistan Stock Exchange (PSX) on Wednesday experienced a volatile trading session as profit-taking halted the recent rally, causing a decline of over 650 points in the benchmark index.

Following two days of strong buying by local mutual funds, investors opted to book profit, which resulted in fluctuations throughout the session. The KSE-100 index oscillated between the intra-day high of 234 points and intra-day low of 678 points. “Stocks closed bearish amid uncertainty about the outcome of IMF talks pertaining to FY26 federal budget proposals,” said Ahsan Mehanti of Arif Habib Corp.

Weak global equities and crude oil prices amid geopolitical risks and uncertainty about tax reforms ahead of the release of next IMF loan tranche played the role of catalysts in bearish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded a decline of 665.76 points, or 0.58%, and settled at 113,862.33.

Arif Habib Limited (AHL) wrote in its report that continued resistance at the 115,000 level forced a retreat to 114,000. On KSE-100, 37 shares rose while 59 fell, with Pakgen Power (+8.95%), Cnergyico PK (+7.85%) and Interloop Limited (+4.63%) contributing the most to index gains. On the other hand, OGDC (-2.09%), Pakistan Petroleum (-2.21%) and Mari Petroleum (-1.33%) were the biggest drags, it said.

Hubco (-0.07%) reported 1HFY25 earnings per share (EPS) of Rs17.99, reflecting a 28% year-on-year decline, along with dividend per share of Rs5. For 2QFY25, the company posted EPS of Rs3.25, a significant 72% year-on-year drop, which came in below expectations.

Topline Securities reported that the market rally paused as profit-taking sparked volatility after two days of strong buying by local mutual funds. The benchmark index fluctuated between the intra-day high of 234 points and intra-day low of 678 points before settling at 113,862, down 666 points, or 0.58%, it said. The downward movement was primarily driven by Engro Holdings, OGDC, Pakistan Petroleum, Mari Petroleum and PSO, which collectively shaved 417 points off the index.

Hubco announced 2QFY25 EPS of Rs3.25, which fell short of expectations due to lower gross profits and higher other expenses. However, the company declared a dividend of Rs5 per share, exceeding industry estimates, added Topline. Muhammad Hasan Ather of JS Global commented that the KSE-100 index shed 666 points, which was driven by notable selling in key sectors including banks and exploration & production. Major stocks such as Engro Holdings, OGDC, Pakistan Petroleum, Mari Petroleum and PSO traded in the red.

The upcoming IMF mission’s review of the $7 billion Extended Fund Facility and the 2025-26 budget are expected to influence market sentiment. “The outlook hinges on successful negotiations and economic reforms,” he said. KTrade wrote in its report that the lack of buyer strength continued to dent market sentiment, adding that approval of the IMF tranche remained a key catalyst for the market to make a sustainable recovery.

Overall trading volumes were recorded at 640.2 million shares compared with the previous session’s tally of 496 million. Total traded value for the day stood at Rs22.7 billion. Shares of 446 companies were traded. Of these, 126 stocks closed higher, 260 declined and 60 remained unchanged.

Cnergyico PK led the volume chart with 83.9 million shares, gaining Rs0.56 to close at Rs7.69. It was followed by Pakistan International Bulk Terminal with 49.3 million shares, gaining Rs0.41 to close at Rs9.08 and Sui Southern Gas Company with 39.4 million shares, up Rs2.72 to close at Rs34.18. Foreign investors bought shares worth Rs9 million.