PSX edges higher as KSE-100 gains 234 points

PSX edges higher as KSE-100 gains 234 points

Pakistan Stock Exchange (PSX) ended Friday’s trading session slightly higher, with the benchmark KSE-100 Index adding 233.55 points as selective buying in banking, technology and fertiliser stocks helped offset losses in oil and gas and cement shares. However, elevated crude oil prices, geopolitical tensions and uncertainty over the State Bank of Pakistan’s upcoming monetary policy decision kept investors cautious.

The benchmark index rose 0.14% to close at 166,419.72 points, reflecting a modest recovery rather than a broad-based market rally. Investors remained reluctant to make aggressive moves amid concerns over rising energy costs and the potential impact of inflationary pressures on interest rates.

Topline Securities described the session as range-bound, noting that the KSE-100 Index fluctuated between an intraday high of 0.31% and a low of 0.14% before settling in positive territory. The brokerage attributed the limited movement to a lack of fresh market triggers and persistently high crude oil prices.

Buying interest in Systems Limited (SYS), United Bank Limited (UBL), MCB Bank, Bank AL Habib (BAHL) and Engro Fertilizers (EFERT) provided the strongest support to the benchmark. These five stocks collectively contributed 269 points to the index.

However, losses in Oil and Gas Development Company (OGDC), Lucky Cement (LUCK), Meezan Bank (MEBL), Pakistan Telecommunication Company Limited (PTC) and Engro Holdings (ENGROH) offset much of those gains, collectively dragging the index down by 223 points.

Trading activity remained subdued, with total volume reaching approximately 133 million shares. Cnergyico PK Limited (CNERGY), K-Electric (KEL) and Lotte Chemical Pakistan (LOTCHEM) featured among the notable volume leaders. In terms of traded value, Pakistan State Oil (PSO) led the market with transactions worth Rs1.42 billion, followed by UBL at Rs1.07 billion. CNERGY recorded Rs479 million in traded value, Pakistan Petroleum Limited (PPL) accounted for Rs473 million, while Attock Refinery Limited (ATRL) recorded Rs384 million.

Ahmed Sheraz, Head of Support Trading at KASB KTrade, said the market’s modest advance reflected mixed sectoral performance and limited investor participation. He noted that selective buying in banking, technology and oil and gas stocks helped sustain the index, while weakness in cement shares and selling pressure in several heavyweight stocks restricted further gains.

Despite Friday’s recovery, the KSE-100 Index remained under pressure on a weekly basis, declining 0.4% week-on-week, according to Topline Securities. The brokerage linked the decline primarily to high international crude oil prices amid geopolitical tensions between the United States and Iran, alongside expectations that the State Bank might raise its policy rate at the upcoming monetary policy meeting to contain inflation.

Developments in the international oil market remained a major concern for investors. Brent crude traded near $105 per barrel in the morning before moving above $106 during the session. Persistently expensive oil has raised concerns about Pakistan’s import bill, inflation outlook and the potential pressure on domestic economic activity.

Market participants are now watching the central bank’s upcoming policy decision and movements in global energy prices for clearer direction. Until fresh economic or corporate developments emerge, analysts expect investor sentiment to remain cautious, with stock-specific buying and selling likely to drive short-term movements in the benchmark index.