KARACHI:
Pakistan Stock Exchange (PSX) witnessed a range-bound session throughout the final day of the trading week on Friday, with the benchmark index fluctuating within a narrow band before closing in the red.
The cautious activity came amid limited progress in US-Iran peace negotiations and persistent regional tensions, including clashes in Lebanon despite a ceasefire. At the close of trading, the KSE-100 index posted a decline of 696.57 points, or 0.41%, and settled at 170,478.94.
“A range-bound trading session was observed at the exchange, with the index fluctuating within a narrow band before closing at 170,479 points, down 0.41%,” stated Topline Securities in its market review.
The cautious market activity was largely driven by limited progress in US-Iran peace negotiations in the current week. Meanwhile, renewed tensions emerged in the region as clashes continued despite a ceasefire agreed in April, while hostilities in Lebanon further weighed on investor sentiment.
The top positive contribution to the index came from the PSX, Javedan Corporation, Kohinoor Textile Mills, Millat Tractors and Nishat Power, as they cumulatively contributed 138 points. On the other hand, UBL, Oil and Gas Development Company, Pakistan Petroleum, MCB Bank and Meezan Bank lost value, weighing the index down by 476 points, Topline said.
Traded value-wise, Maple Leaf Cement (Rs1.33 billion), TRG Pakistan (Rs1.02 billion), PTCL (Rs992 million), DG Khan Cement (Rs705 million), OGDC (Rs655 million) and PPL (Rs635 million) dominated the activity, it added.
Arif Habib Limited (AHL) noted that throughout the week, the 170k level held steady despite the KSE-100 declining by 2%. On Friday, the market breadth was slightly negative as 44 shares rose while 51 fell.
The most significant contributors to the index gains were PSX (+10%), Javedan Corp (+2.57%), and Kohinoor Textile Mills (+4.36%), whereas the biggest drags on the index were UBL (-1.27%), OGDC (-1.31%), and PPL (-1.74%).
Among domestic economic news, Minister of State for Finance Bilal Azhar Kayani announced in televised comments that the government would implement a fixed 1% tax on retailers with an annual turnover of Rs200 million or less, a measure expected to affect approximately 4.4 million retailers. In the corporate sector, Telenor ASA was reportedly considering the sale of its controlling stake in the digital banking arm, Easypaisa Bank Ltd, in Pakistan.
On the geopolitical front, talks between the US and Iran over an interim peace deal showed little progress, alongside clashes in Lebanon. Looking forward to the upcoming week, the 170k remains the key support level, while 175k stands as the primary upside target, AHL said.
Overall trading volumes were recorded at 727.17 million shares compared with the previous session’s tally of 697.17 million. The value of shares traded during the day was Rs26.75 billion.
In the ready market, shares of 491 companies were traded. Of these, 248 stocks closed higher, 205 fell, and 38 remained unchanged.
TPL Properties was the volume leader with trading in 42.06 million shares, gaining Rs0.57 to close at Rs9.33. It was followed by TPL Corp with 42 million shares, gaining Rs0.49 to close at Rs12.20, and Pace (Pakistan) with 41.81 million shares, gaining Rs0.90 to settle at Rs11.62.
During the day, foreign investors bought shares worth Rs144.3 million, the National Clearing Company reported.
