KSE-100 Index closes marginally higher as late-session selling erodes early gains

The Pakistan Stock Exchange (PSX) saw a highly volatile session on Tuesday, with the benchmark KSE-100 Index shedding most of its gains before managing to close marginally higher.

The market opened on a strong note, extending its initial rally as aggressive buying pushed the index to an intra-day high of 178,370.45.

Positive sentiment dominated the first half of trading, with the benchmark hovering above 178,000 for much of the morning. However, the bullish momentum faded sharply after mid-day as investors resorted to profit-taking.

Selling pressure intensified throughout the afternoon, dragging the index below 177,000 and erasing almost all of the day’s gains. The benchmark eventually touched an intra-day low of 176,062.69.

At close, the benchmark index settled at 176,133.56, up by 205.83 points or 0.12%.

“The subdued close reflected cautious investor sentiment amid lingering geopolitical tensions and persistent uncertainty surrounding global energy markets, prompting market participants to remain selective despite the early optimism,” brokerage house Topline Securities said in its post-market report.

“On the sectoral front, refinery stocks bore the brunt of the selling pressure amid market speculation that the long-awaited refinery policy could face further delays. Overall, investor sentiment remained guarded as market participants continued to assess geopolitical developments and their potential implications for global oil prices, inflation, and foreign investment flows.”

On the index contribution front, UBL, ENGROH, MEBL, LUCK, and MCB emerged as the top positive contributors, collectively adding approximately 258 points to the benchmark index. Conversely, OGDC, FFC, MLCF, CNERGY, and DGKC weighed on the market, collectively eroding around 178 points from the index, Topline said.

On Monday, the PSX ended marginally higher after staging a remarkable intra-day recovery from an early plunge, as aggressive value hunting in blue-chip stocks offset panic selling triggered by escalating geopolitical tensions in the Middle East and rising international oil prices. The KSE-100 gained 124.95 points, or 0.07%, to close at 175,927.74 points.

Internationally, Asian stocks gained on Tuesday as mediation efforts in the Middle East pushed oil prices away from a one-month high, while investors ​braced for a slate of corporate earnings that will test an under-pressure AI trade.

Yemen’s Iran-aligned Houthis said they would impose ‌a naval blockade on Saudi Arabia, a move that could further disrupt energy supplies, amid attacks between the US and Iran, even as efforts were being made to revive a fragile ceasefire.

Brent crude futures eased 0.38% to $88.88 per barrel in early trading on Tuesday as investors latched on to hopes of a resolution. Brent hit its ​highest since mid-June at $91.42 a barrel in the previous session.

A senior Iranian official told Reuters on Monday that Tehran had received a ​proposal from mediators for a 10-day ceasefire, intended to pave the way for a lasting agreement to end the ⁠war that began on 7 October with US-Israeli attacks on Iran.

In stocks, MSCI’s broadest index of ​Asia-Pacific shares outside Japan was 0.25% higher after dropping for three straight sessions. Japan’s gained over 1% while South Korea’s KOSPI rose nearly 3%.

Meanwhile, the Pakistani rupee extended its gains, appreciating 0.01%, against the US dollar on Tuesday. The local unit closed the day at 277.92, a gain of Re0.03 against the greenback.

Volume on the all-share index increased to 1,003.50 million from 675.92 million recorded in the previous close.

The value of shares rose to Rs35.70 billion from Rs30.27 billion in the previous session.

Cnergyico PK was the volume leader with 263.63 million shares, followed by Trust Brokerage with 111.32 million shares, and TPL Properties with 73.87 million shares.

Shares of 494 companies were traded on Tuesday, of which 268 registered an increase, 191 recorded a fall, and 35 remained unchanged.