The Pakistan Stock Exchange (PSX) moved cautiously on Tuesday as investors weighed rollover week adjustments and awaited clearer signals ahead of bidding for the privatisation of Pakistan International Airlines (PIA).
The trading session kicked off on a lacklustre note, lacking fresh vigour, which pushed investors to tread with caution. As the day progressed, the KSE-100 index recorded a brief spike, but buying interest gradually evaporated as market players chose to stay defensive.
Light selling emerged after midday, nudging the index slightly lower, though no significant pressure was felt. A mild recovery towards the close helped stabilise the market.
The index oscillated between the intra-day high of 171,867 and low of 170,968. The interest around PIA sell-off sparked focus on selective stocks, but the absence of any immediate announcement kept the momentum muted. At close, the benchmark index stood at 171,073.73, down 130.44 points, or 0.08%.
KTrade Securities observed that stocks remained range bound for another session as subdued volumes on the regular counter kept market movement muted. The KSE-100 index closed marginally lower by 130 points at 171,074.
Selling pressure was largely seen in heavyweight stocks such as Engro Holdings, Fauji Fertiliser, Systems Limited, Lucky Cement, Oil & Gas Development Company and Pakistan State Oil, which weighed on the index, it said. On the other hand, selective buying in HBL, Kohat Cement, UBL, PTCL and Dolmen City REIT provided some support and helped limit the downside.
According to Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib, the PSX witnessed another range-bound session as the index closed nearly flat at 171,074, down 130 points. Market sentiment remained weak and directionless, a typical feature of the rollover week.
He mentioned that weekly oil and gas reserves data indicated a decline in production, with oil output falling 3.1% week-on-week (WoW) to 63,556 barrels per day (bpd), while gas production dropped 7.7% WoW to 2,692 million cubic feet per day (mmcfd) due to lower output from Mari, Uch, Sui, Qadirpur and Kandhkot fields.
As the market progresses through the rollover week, Najib said, subdued volumes and routine selling pressure may continue to weigh on sentiment, keeping near-term bias cautious.
Ismail Iqbal Securities wrote that the benchmark index closed on a flat note in the absence of positive triggers, keeping investors wary and prompting a wait-and-see approach for a fresh catalyst.
Stocks of oil & gas exploration companies, fertiliser firms and oil & gas marketing companies were the major laggards, cumulatively shedding 209 points from the index, it said.
JS Global analyst Ali Nawaz commented that a lacklustre activity was observed at the PSX as investors preferred to stay cautious during the rollover week and booked profits at higher levels.
The benchmark index moved between 171,867 (+663 points) and 170,968 (-235 points), eventually closing at 171,074 with a minor loss of 130 points. He advised investors to adopt a buy-on-dips stance.
Overall trading volumes decreased to 650.1 million shares against Monday’s tally of 684.5 million. The value of traded shares stood at Rs28.3 billion.
Shares of 481 companies were traded. Of these, 151 stocks closed higher, 287 fell and 43 remained unchanged.
PIA Holding Company was the volume leader with trading in 45 million shares, losing Rs2.05 to close at Rs37.62. It was followed by K-Electric with 39.5 million shares, falling Rs0.22 to close at Rs5.88 and PTCL with 32.3 million shares, rising Rs2.79 to close at Rs49.25.
During the day, foreign investors bought shares worth Rs226.8 million, the National Clearing Company reported.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More
