The Pakistan Stock Exchange (PSX) ended its two-day upward trend on Wednesday as the benchmark KSE-100 Index fell sharply due to profit-taking and renewed investor caution. The index dropped by 755 points, or 0.65%, settling at 116,020.11.
Early Gains Reversed by Late Selling
The trading session began on a strong note with the KSE-100 Index climbing above 117,424, boosted by early optimism and strong earnings reports. However, late-session selling pressure, especially in large-cap exploration and production (E&P) stocks, triggered a reversal, erasing intraday gains.
Analysts linked the downturn to profit-taking at higher levels, failure to close the “Monday Tariff Gap,” and a bearish short-term technical outlook.
Market Sentiment Dampened by Economic and Global Factors
Ahsan Mehanti of Arif Habib Corporation attributed the decline to concerns over the US-China trade tensions, a 3.5% drop in large-scale manufacturing (LSM) growth for February 2025, and volatile rupee trends. Additionally, disappointing cement sales data for March added pressure on the market.
Arif Habib Limited (AHL) noted that the market’s inability to reclaim the tariff gap zone between 117.6k–118.6k suggests continued bearish momentum.
Key Gainers and Decliners
Despite the broader downturn, a few stocks showed positive movement:
- UBL (+0.87%) led the gainers with an impressive 125% year-on-year (YoY) surge in EPS, reaching Rs29.34. The bank also announced a Rs11 dividend and a two-for-one stock split, driven by a 200% YoY growth in net interest income and a Rs1.6 billion provisioning reversal.
- Other notable gainers included Engro Fertilisers (+1.28%) and MCB Bank (+0.94%).
Major draggers on the index included:
- Mari Petroleum (-2.51%)
- Pakistan Petroleum Ltd (PPL) (-1.75%)
- Pakistan State Oil (PSO) (-2.43%)
Mixed Investor Mood Amid Global Trade Tensions
Topline Securities highlighted a “hot and cold” trading session, reflecting a blend of optimism and caution. The market opened strong with a 648-point gain in early hours but lost steam due to profit-booking, dipping to an intra-day low of 999 points.
Ongoing concerns about the US-China tariff war and its impact on global economic stability continued to weigh on investor confidence.
Banking and Export Sectors Remain Resilient
According to JS Global analyst Muhammad Hasan Ather, while E&P stocks led the decline, banking and cement stocks maintained some momentum. With strong liquidity and improving external accounts, banking and export-oriented sectors are expected to sustain investor interest in the near term.
Trading Volume and Activity Overview
- Total trading volume reached 481.8 million shares, slightly up from 479.5 million in the previous session.
- Total market value stood at Rs38.5 billion.
- A total of 451 companies were traded:
- 140 stocks closed higher
- 260 declined
- 51 remained unchanged
Top volume leaders included:
- Cnergyico PK – 35.6 million shares (closed at Rs8.51, down Rs0.02)
- Bank of Punjab – 25.5 million shares (closed at Rs11.11, down Rs0.06)
- Fauji Foods – 25.3 million shares (closed at Rs15.91, up Rs0.10)
Additionally, foreign investors were net buyers, with purchases worth Rs222 million, according to NCCPL data.
