Infostani International: The stock market witnessed intense volatility as bears and bulls clashed throughout the trading session. Initial pressure, fueled by domestic political noise and falling international oil prices, was offset by selective buying and hopes of an SBP rate cut. Despite a partial recovery, the index closed below 64,000. This report explores the factors driving market fluctuations and highlights key stocks in play.
Stock Market Update: Bears Prevail Amidst Geopolitical Uncertainty and Political Noise
On Wednesday, bears asserted their dominance in a tug-of-war with bulls at the Pakistan Stock Exchange (PSX) as the KSE-100 index continued its downward journey due to increasing geopolitical tensions and political uncertainty.
The stock market faced pressure from the beginning of the trading session as the tussle between bears and bulls intensified. Bulls succumbed to selling pressure in the second half, leading to the market touching its intra-day low at 63,290.18 points amid domestic political noise. The bearish momentum at the bourse was further fueled by weakening oil prices in the international market.
Despite the challenging situation, the index saw some recovery due to expectations of a rate cut by the State Bank of Pakistan (SBP) and selective buying in power, energy, fertilizer, auto, tech, and cement sectors. However, it fell short of reaching the 64,000 mark and closed in the red.
Arif Habib Corp MD Ahsan Mehanti remarked, “Stocks closed lower on geopolitical uncertainty and political noise.” He attributed the bearish close to a slump in global equities, weak international crude oil prices, and uncertainty about the SBP policy rate announcement.
At the close, the benchmark KSE-100 index registered a decrease of 170.13 points, settling at 63,567.34. Topline Securities described it as “another day of rivalry between bulls and bears,” with bears ultimately emerging as winners.
Market Analysis: Sectoral Shifts, Key Performers, and Expert Insights
Investors actively switched between selective stocks in the power, energy, fertilizer, auto, tech, and cement sectors. Notably, Hub Power, Pakistan Petroleum, Fauji Fertilizer Bin Qasim, Millat Tractors, TRG Pakistan, and Lucky Cement collectively lost 236 points. On the other hand, Engro Corporation, Engro Fertilizers, Meezan Bank, and United Bank collectively added 253 points due to renewed buying interest.
Arif Habib Limited (AHL) highlighted in its review that the market turned away from the day’s high at 64,044, and the focus shifted to 63,000 for signs of support for the remainder of the week.
JS Global analyst Muhammad Shuja Qureshi observed that the KSE-100 index lost 170 points, with selling in the refinery sector impacting overall sentiment. He advised a cautious stance, suggesting investors accumulate value stocks on dips.
Key Financial Metrics and Trading Highlights: Market Performance Snapshot
Overall trading volumes increased to 421.3 million shares against Tuesday’s tally of 407.5 million, with the value of shares traded during the day amounting to Rs18.6 billion.
Among the actively traded stocks, Pakistan Telecommunication Company led the volume with trading in 45.98 million shares, gaining Rs0.45 to close at Rs14.02. Following closely were K-Electric with 41.6 million shares, losing Rs0.2 to close at Rs5.59, and Treet Corp with 36.4 million shares, gaining Rs1.06 to close at Rs20.05.
Foreign investors were net sellers of shares worth Rs620.9 million, according to the NCCPL.