KARACHI: Pakistan's stock market extended its losing streak on Wednesday as investors engaged in profit-taking due to a lack of positive catalysts and ongoing concerns about geopolitical tensions in the Middle East, pushing the benchmark KSE-100 index down by more than 830 points.
"Another day was lost to geopolitical uncertainty," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL). At the close, the KSE-100 index fell 831.13 points, or 0.49%, settling at 170,190.64.
According to AHL, the PSX remained under pressure as the index shed 831 points. The market traded in a broad range of 1,834 points during the session but managed to hold the key 170,000-point level despite persistent selling pressure. Market breadth was weak, with only 25 stocks rising against 74 decliners.
Honda Atlas Cars emerged as the largest positive contributor, adding 20.8 points, followed by MCB Bank, Systems Limited, and Pakistan Petroleum Limited (PPL). On the downside, Lucky Cement, United Bank (UBL), Meezan Bank, and Lotte Chemical weighed heavily on the index.
The brokerage attributed the subdued sentiment to escalating geopolitical tensions in the Middle East, including attacks by the US and Iran, and concerns over regional oil supplies. It also highlighted developments such as OGDC's board approval of a project expected to produce 2,000 barrels of oil and 1.1 million cubic feet of gas per day, while investors awaited the federal budget due on June 10.
Market activity remained modest, with traded volumes reaching 551.9 million shares and value clocking in at Rs23.8 billion. AHL noted that buying interest emerged around the 170,000-point level and maintained its medium-term target of 175,000 for the KSE-100.
Topline Securities noted that the KSE-100 index ended Wednesday's session on a bearish note, closing down by 831 points (-0.49%). The index traded in a wide intra-day range, touching a high of 171,624 before sliding to a low of 169,790, reflecting persistent selling pressure. The decline was driven by profit-taking and cautious investor sentiment amid a lack of fresh positive triggers. Ongoing geopolitical tensions, particularly the absence of a US-Iran peace agreement, and their impact on global oil prices further dampened market confidence.
Heavyweight stocks bore the brunt of selling, with Lucky Cement, UBL, Meezan Bank, Engro Holdings, and Hubco collectively dragging the benchmark lower by 343 points, Topline said.
Overall trading volumes were recorded at 551.95 million shares compared with the previous session's 550.79 million. The value of shares traded during the day was Rs23.76 billion. Shares of 491 companies were traded, with 183 closing higher, 267 falling, and 41 remaining unchanged.
Treet Battery was the volume leader with 46.64 million shares traded, losing Rs0.03 to close at Rs10.79. It was followed by Dewan Cement with 33.76 million shares, gaining Rs0.40 to close at Rs12.20, and Sitara Petroleum with 25.24 million shares, gaining Rs0.84 to close at Rs20.13.
Foreign investors sold shares worth Rs379 million, the National Clearing Company reported.
