PSX: Stocks end week on positive note amid late buying

The Pakistan Stock Exchange (PSX) observed a volatile trading session on Friday, with the benchmark KSE-100 Index ending the week with a marginal gain of over 250 points.

The market started on a positive note and climbed towards 171,000 points, before coming under selling pressure during the morning session. The index subsequently slipped below the 170,000 level, touching its intraday low of 169,890.56, but recovered gradually towards midday.

Towards the close, late-session buying pushed the index sharply higher, taking it to the intraday high of 171,159.73. However, some profit-taking emerged near the closing minutes.

At close, the benchmark index settled at 170,765.22, up 266.28 points or 0.16%.

“The lacklustre activity was attributed to investors’ preference to remain on the sidelines amid elevated crude oil prices and a lack of meaningful progress in negotiations between the US and Iran,” said Topline Securities in its post-market comments.

“Top positive contribution to the index came from HBL, UBL, BAFL, BAHL and PSO, as they cumulatively contributed 206 points to the index; on the other hand, MEBL, FFC, HUBC, PTC and CNERGY lost value to weigh down on the index by 152 points,” it added.

As per the brokerage house, the major event of the week was the government’s signing of long-awaited upgrade agreements with four of Pakistan’s five oil refineries—ATRL PA, PRL PA, NRL PA and CNERGY PA.

The agreements envisage approximately $5bn in investment over the next five years, aimed at modernizing refining capacity, increasing production of cleaner Euro-V fuels, and reducing furnace-oil output, said Topline.

In a key development, Saudi Arabia, Turkiye and Pakistan would hold an urgent, high-level meeting under a joint defence pact to discuss ways to support the kingdom amid attacks by ​Yemen’s Houthis, while Tehran sought to distance itself from the rapid advance of its Houthi allies.

On Thursday, PSX witnessed a sharply negative session as rising international crude oil prices, limited progress in US-Iran diplomatic talks and concerns over a potential US diesel export ban weighed on investor sentiment, triggering broad-based selling across the market.

The benchmark KSE-100 Index plunged 1,733.57 points, or 1.01%, to close at 170,498.95 points.

Internationally, Asian shares held their nerve on Friday as a relentless bond selloff pushed longer-dated US yields ​to two-decade highs, raising borrowing costs worldwide and threatening lofty equity valuations.

The return of oil above $100 a barrel, with Brent crude ‌near $105, has revived inflation fears, bolstering bets on multiple Federal Reserve rate hikes after its first move in more than three years and putting the dollar on track for a 1% weekly gain.

Chinese President Xi Jinping is in Washington for talks with President Donald Trump, though beneath the fanfare there has been scant evidence of breakthroughs on ​thorny issues over AI, trade, Taiwan or the war with Iran.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, with ​most markets closed for a holiday.

Japan’s Nikkei rose 1%, while Australia’s resources-heavy ⁠shares fell 0.6%. Hong Kong’s Hang Seng index skidded 1%.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Friday. The local unit closed the day at 277.16, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 482.76 million from 759.97 million recorded in the previous close.

The value of shares lowered to Rs19.28 billion from Rs27.54 billion in the previous session.

Cnergyico PK was the volume leader with 108.19 million shares, followed by WorldCall Telecom with 28.94 million shares, and Pak Refinery with 27.56 million shares.

Shares of 493 companies were traded on Friday, of which 219 registered an increase, 217 recorded a fall, and 57 remained unchanged.