KARACHI: Investor fears over geopolitical tensions in the Middle East caused the stock market to close lower on Friday for the third straight session. The benchmark KSE-100 index closed at 153,866.17 points, down 555.27 points, or 0.36 per cent, from the previous closing of 154,421.43 points.
The index touched an intraday high of 155,002.11 points before retreating to a low of 152,780.79 points during the session. The continued decline came on sharply reduced volumes, pointing to a lack of fresh buying interest as the market drifted further from the highs recorded earlier in the week.
The KSE-30 index declined by 268.71 points, or 0.57 per cent, to close at 47,054.02 points, against 47,322.74 points in the prior session. Ali Najib, deputy head of trading at Arif Habib Ltd, said PSX experienced a lacklustre trading session. During the shortened Ramazan session, with trading hours limited to three hours and 15 minutes, investor activity remained muted. Market participants largely preferred to stay on the sidelines ahead of the weekend, amid concerns over potential geopolitical developments, which may result in negatively for the market sentiments.
“Looking ahead, market momentum will largely hinge on the stability of geopolitical developments. If external conditions remain calm, the recent positive undertone could pave the way for a gradual recovery. However, investors are expected to remain cautious, closely tracking global cues and political developments before taking fresh positions,” he said.
Trading activity fell sharply in the shortened session. Shares traded in the ready market dropped to 303.016 million from 404.252 million in the previous session, while traded value contracted sharply to Rs14.69 billion from Rs24.674 billion. Market capitalisation edged lower to Rs17.329 trillion from Rs17.366 trillion. Of the 472 companies active during the session, 190 closed in positive territory, 205 recorded losses and 77 remained unchanged.
Among the top gainers, Blessed Textiles Limited rose by Rs47.48 to close at Rs522.27 per share. Pakistan Services Limited followed, adding Rs44.61 to end at Rs891.83 per share. On the declining side, PIA Holding Company Limited reversed a portion of its recent sharp gains, falling by Rs378.5 to close at Rs16,646 per share. Unilever Pakistan Foods Limited also continued its retreat, shedding Rs343.78 to close at Rs24,656.22 per share.
According to Topline Sales Desk, during the initial hours of the trade range bound activity was observed. This pressure can be accredited to investors’ fear of any negative development over the weekend resulting from ongoing Middle East conflict, where oil prices is already hovering around $100 a barrel.
Top negative contribution to the index came from ENGROH, FFC, LUCK, HUBC and MEBL, as they cumulatively contributed -649 points to the index. Traded value-wise NBP (Rs937 million), ENGROH (Rs925 million), OGDC (Rs796 million), HUBC (Rs696 million) and LUCK (Rs676 million) dominated the trading activity.
Investor participation remained at lower end as traded value and volume for the day stood at 290 million shares and Rs14.5 billion respectively.Dost Steels Ltd led the volume table with 27.793 million shares traded, gaining 20 paisas to close at Rs5.7 per share. Hascol Petroleum came second with 25.429 million shares, rising by 53 paisas to close at Rs17.99 per share. Other significant turnover stocks included BO Punjab, F Nat Equities, K-Electric Ltd, Crescent Star Insurance, Kohinoor Spinning, JS Momentum, WorldCall Telecom, and Nishat ChunPower.
In the futures market, 346 companies recorded trading activity, of which 116 advanced, 224 declined, and six remained unchanged, reflecting continued selling pressure.
