KARACHI: The Pakistan Stock Exchange (PSX) ended Wednesday's session on a subdued note, with the benchmark KSE-100 index posting a marginal gain as investors paused for breath after the market's recent record-breaking rally. The index settled at 180,511.02, up 118.05 points, or 0.07%, from the previous close.
Trading remained choppy throughout the day as participants weighed strong macroeconomic indicators against the need to consolidate recent gains. The market oscillated within a wide range, touching the intra-day high of 181,357.70 before slipping to the low of 179,564.17. The movement reflected a tug-of-war between selective buying and profit-taking, with investors showing reluctance to chase prices higher after the sharp advances recorded earlier in the week.
Selective buying in key sectors
Investor interest was observed in cement, fertiliser, energy and banking stocks, helping the market to maintain its positive trajectory. However, the overall tone remained cautious as traders reassessed positions near key resistance levels.
KTrade Securities' equity trader Ahmed Sheraz wrote that the KSE-100 index closed at 180,511, gaining 118 points (+0.07% day-on-day) in a relatively range-bound session as investors maintained a cautious stance following the strong rally witnessed over the past few trading sessions. Trading activity remained healthy, indicating continued investor participation despite the slower pace of gains.
Positive external developments
The market has extended the positive momentum since last week, supported by improving external developments and constructive domestic sentiment. Investor confidence continued to benefit from easing geopolitical concerns following the recent US-Iran peace agreement, which contributed to a decline in international oil prices to below $80 per barrel.
"Lower oil prices are viewed as positive for Pakistan's macroeconomic outlook, helping ease concerns regarding inflation and the external account," said Sheraz.
While the FY27 federal budget has largely been received positively by market participants, the benchmark index now faces an important technical test after its recent advance. "Going forward, investors are likely to closely monitor whether the market can sustain its momentum and decisively break above key resistance levels, while remaining attentive to developments in oil markets, economic indicators and budget implementation measures," he added.
Market breadth and major movers
It was a flat Wednesday, which saw the KSE-100 rise to 181.3k intra-day before closing at 180.5k, commented Arif Habib Limited (AHL) in its report. Some 47 shares rose while 53 fell with Fatima Fertiliser (+9.78%), Pakistan Petroleum (+2.8%) and Oil & Gas Development Company (+1.95%) being the largest contributors to the index gains. In contrast, UBL (-2.03%), Meezan Bank (-1.63%) and Hub Power (-1.63%) were the biggest index drags.
AHL mentioned that the US and Iran were expected to sign a memorandum of understanding, paving the way for talks aimed at ending their war and putting new limits on Iran's nuclear programme. "Support remains at 175k against which January highs are the upside draw," remarked AHL.
JS Global analyst Mubashir Anis Naviwala wrote that buying activity remained range bound as investors opted for selective accumulation after the recent rally. The KSE-100 index closed at 180,511, gaining 118 points day-on-day. Selective buying was witnessed in oil & gas, fertiliser, automobile and cement stocks, while banking shares remained under pressure. Investor sentiment stayed cautiously optimistic amid easing geopolitical concerns and a stable macroeconomic outlook. "The flat close indicates consolidation near record highs as investors await fresh economic and corporate triggers," he said.
Trading volumes and foreign investment
Cumulatively, trading volumes increased to 1.23 billion shares from Tuesday's total of 1.22 billion. The value of traded shares stood at Rs69.2 billion. Shares of 495 companies were traded. Of these, 206 stocks went up, 259 fell and 30 remained unchanged. Foreign investors bought shares worth Rs575 million, the National Clearing Company reported.
