Earlier, trading opened on a robust note in the wake of federal cabinet’s approval of a large-scale circular debt resolution plan worth Rs1.2 trillion, which fuelled broad-based buying in energy sectors.
However, news of Iran’s missile strikes on Israel rattled investors, leading to a sharp reversal. The heightened tensions spurred profit-taking, particularly in fertiliser and cement sectors. Banks emerged as a safe-haven, providing some support.
Arif Habib Corp MD Ahsan Mehanti commented that stocks closed lower on fears of escalation in Middle East tensions. “Weak rupee and a slump in global equities were factors behind panic selling,” he said.
At the end of trading, the benchmark KSE-100 index registered a drop of 463.34 points, or 0.38%, and settled at 120,002.59.
Arif Habib Limited Deputy Head of Trading Ali Najib noted that geopolitical ripples drove bulls to sidelines as the KSE-100 index extended losses by closing at 120,003, just above the key psychological level of 120k. The index reflected a day-on-day decline of 463 points.
The trading session opened with a strong bullish momentum following the cabinet’s approval of over Rs1.2 trillion for circular debt resolution. This development was well-received by investors, prompting heavy buying in key energy stocks, including OGDC, Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and Hub Power, he said.
However, news of Iran’s attack on the Israeli capital weighed on bullish sentiment, triggering profit-taking. As a result, the index lost its upward momentum and briefly fell below the 120,000 mark, hitting the intra-day low of 119,770, down 696 points, Najib added.
KTrade Securities, in its report, stated that stocks extended their downward trend as escalating Israel-Iran tensions weighed on investor sentiment. The KSE-100 index shed 463 points to close at 120,003, retreating from the intra-day high of 121,745.
Market activity remained muted, with total volumes at 598 million shares. Sector performance was broadly negative, where power, cement and oil and gas sectors faced steep losses, it said.
Key index laggards were Pakgen Power, Engro Fertilisers, Engro Holdings, Lucky Cement and Mari Petroleum. The banking sector was the sole bright spot, largely supported by UBL, KTrade added.
Topline Securities reported that the bourse kicked off trading on a strong footing, buoyed by news that the federal cabinet had green-lighted a financial restructuring plan aimed at slashing Rs1.275 trillion in circular debt within the power sector over the next six years.
Riding on that optimism, the index surged to the intra-day high of 1,279 points. However, the bullish momentum was short-lived as profit-taking set in later in the day in line with global market trends, it said.
Rising geopolitical tensions, particularly the intensifying stand-off between Israel and Iran, dampened investor sentiment and led to a broad-based pullback, overshadowing the earlier euphoria and highlighting the fragility of market confidence.
On the upside, index heavyweights from the banking sector provided some support, contributing 203 points. However, the gains were offset by power and cement sectors that pulled the index down by 270 points, Topline added.
Overall trading volumes decreased to 604.5 million shares compared with Wednesday’s tally of 707.3 million. Shares of 459 companies were traded. Of these, 155 stocks closed higher, 269 fell and 35 remained unchanged.
WorldCall Telecom was the volume leader with trading in 64.6 million shares, down Rs0.01 to close at Rs1.49. It was followed by Sui Southern Gas Company with 35.6 million shares, falling Rs0.96 to close at Rs43.28 and First Prudential Modaraba with 30.3 million shares, losing Rs0.3 to close at Rs4.31. Foreign investors sold shares worth Rs7.6 million, the National Clearing Company reported.