Despite briefly crossing 140,000 during early trade, led by cement, technology and fertiliser stocks, profit-taking in banking-sector blue chips pulled the index below the threshold by the close of the session. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher amid speculation ahead of the SBP policy announcement on July 30. Pakistan’s sovereign bonds surged after S&P Global lifted its credit rating to ‘B-‘. Additionally, a strong earnings outlook and surging global crude oil prices drove the positive close at the PSX, Mehanti said.
At the end of trading, the benchmark KSE-100 index recorded an increase of 172.77 points, or 0.12%, and settled at 139,380.06.
In its review, Topline Securities noted that the market remained range bound throughout the session, fluctuating between the intra-day high of 140,149 and intra-day low of 139,196. The banking sector faced pressure amid expectations of policy rate cut, while the cement sector saw positive momentum following approval of a housing finance subsidy scheme by the Economic Coordination Committee, it said.
Top contributors to the index included Lucky Cement, Systems Limited, Pakistan State Oil, Fatima Fertiliser and Sazgar Engineering Works, which collectively added 379 points. On the other hand, UBL, Meezan Bank and Bank Alfalah were the major laggards, dragging the index down by 261 points, Topline added.
Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib remarked that the PSX again attempted to pass the 140,000 mark but in vain as the KSE-100 index ended the day at 139,380 points.
He pointed out that the session resumed on a buoyant note and the index touched intra-day high of 140,149 (up 942 points) in early hours. However, the buying spree proved short-lived as the market succumbed to selling headwinds and ultimately lost the 140,000 level to profit-taking. Over the weekend, Foreign Minister Ishaq Dar stated that Pakistan and the US were “very close” to finalising a trade deal, possibly within days. However, the US side, following Dar’s meeting with Secretary of State Marco Rubio, did not confirm any timeline.
If the deal is finalised, it could boost exports, attract investment and improve market sentiment. It may also strengthen the rupee, though delay could dampen immediate economic impact, Najib said.
The stars of the day were Lucky Cement, Systems Limited, Fatima Fertiliser, Pakistan State Oil and Sazgar Engineering Works, which added 379 points. On the other hand, the index lost 384 points due to some selling in banking sector blue-chip stocks, namely UBL, Meezan Bank, Bank Alfalah, HBL and MCB Bank. “This selling can be attributed to street expectations of a 50-basis-point cut in the upcoming monetary policy meeting,” the analyst said.
“The outlook is still intact as 137,000 will continue to act as strong support for the KSE-100. If breached, the index may be pushed towards 135k, where attractive valuations and anticipated monetary easing can trigger renewed buying interest,” Najib commented.
JS Global analyst Mohammad Waqar Iqbal said that the benchmark index ended the day largely flat despite a strong start as it gave up early gains. Market sentiment was influenced by the ongoing corporate earnings season and anticipation surrounding the upcoming monetary policy announcement, he said.
Overall trading volumes decreased to 589.3 million shares compared with Friday’s tally of 634.8 million. Traded value increased to Rs34.6 billion as compared to Rs24.6 billion in the previous session. Overall, shares of 483 companies were traded. Of these, 251 stocks closed higher, 205 dropped and 27 remained unchanged.
Aisha Steel Mills was the volume leader with trading in 51.8 million shares, gaining Rs0.42 to close at Rs12.76. It was followed by Agha Steel Industries with 46.6 million shares, rising Rs0.94 to close at Rs9.92 and The Bank of Punjab with 23.8 million shares, falling Rs0.11 to close at Rs13.49. Foreign investors sold shares worth Rs750.6 million, the National Clearing Company reported.