Pakistan Stock market falls 784 points as investors book profits

The Pakistan Stock Exchange (PSX) ended its four-session winning streak on Friday as investors opted to book profits pushing the benchmark KSE-100 Index down by 784.19 points.

KARACHI: The Pakistan Stock Exchange (PSX) ended its four-session winning streak on Friday as investors opted to book profits pushing the benchmark KSE-100 Index down by 784.19 points.

The benchmark index settled at 166,409.25 points registering a decline of 0.47% compared with the previous trading session. Trading activity remained substantial with approximately 235 million shares changing hands.

Despite Friday’s downturn, the stock market maintained a positive performance for the week recording an overall increase of 2.5%. The index had recovered from levels around 161,000 points earlier in the week and crossed the 167,000-point mark during trading.

According to market analyst Ahmed Sheraz of KASB KTrade the latest decline was primarily driven by profit-taking following four consecutive sessions of gains.

He noted that the State Bank of Pakistan’s (SBP) decision to raise the policy rate by only 50 basis points provided support to investor confidence. The relatively limited increase helped prevent concerns over more aggressive monetary tightening from weighing heavily on market sentiment.

However, rising international oil prices remained a major concern for investors. Brent crude climbed approximately 2.5% during the day approaching $118 per barrel. Higher oil prices could increase pressure on Pakistan’s external account and contribute to domestic inflationary risks.

Sector-wise, commercial banks, cement manufacturers and refineries recorded notable losses putting additional pressure on the benchmark index.

Among individual companies, United Bank Limited (UBL), Lucky Cement (LUCK), Habib Bank Limited (HBL) and Fatima Fertilizer Company (FATIMA) were among the major negative contributors to the market’s performance.

Looking ahead, investors are expected to closely monitor developments during the coming week. The upcoming United States midterm elections and changing geopolitical conditions could influence international financial markets and investor sentiment.

Market direction will also depend on regional stability and movements in global oil prices. Any improvement in the geopolitical environment could encourage fresh buying while further increases in energy prices or heightened regional tensions may keep investors cautious.