“Trading began on a strong note, buoyed by optimism over a 48-hour ceasefire between Pakistan and Afghanistan, which helped ease geopolitical concerns and initially lifted investor confidence,” noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd.
The index surged to the intra-day high of 166,865 points – up 1,179 points (+0.71%) – reflecting broad-based early gains, he added. However, sentiment reversed sharply in the final trading hour as profit-taking and sector-specific pressure triggered sell-off. Heavyweight stocks from fertiliser, technology and banking sectors, including Engro Holdings, Systems Ltd, Fauji Fertiliser Company (FFC), Engro Fertilisers, Bank AL Habib, Bank Alfalah and HBL, collectively wiped off 813 points from the index.
At the close of trading, the benchmark KSE-100 index registered a sharp decline of 1,241.66 points, or 0.75%, settling at 164,444.72. Arif Habib Limited (AHL), in its report, mentioned that the KSE-100 index extended its downward trajectory, losing 0.75% day-on-day, as market sentiment remained weak.
Out of the actively traded stocks, 32 advanced while 67 declined, with Habib Metropolitan Bank (+4.19%), UBL (+0.48%) and Hubco (+0.5%) providing the most support to the index. On the other hand, Engro (-2.5%), Systems Ltd (-3.02%) and FFC (-0.89%) emerged as major drags, it said.
The market’s cautious tone was further influenced by geopolitical developments as Pakistan and Afghanistan agreed to a 48-hour ceasefire following recent border clashes that left dozens dead.
Analysts noted that Thursday’s session marked the first instance of the KSE-100 retracing into Tuesday’s trading range, suggesting a potential area where buying interest could emerge. However, they warned that if Tuesday’s range is completely mitigated, the index could go for a larger downward correction. Heading into the final session of the week, the KSE-100 was up 0.83% on a week-to-date basis, reflecting partial resilience despite recent volatility. “Bulls stumble as bears reclaim control amid volatility,” noted Topline Securities in its daily market review, saying the trading day began on a strong footing, with the KSE-100 index extending its upward momentum and surging by 1,178 points in early trade.
However, the bullish sentiment proved fleeting as profit-taking, led by local institutions, triggered a sharp reversal. The bears swiftly regained control, dragging the benchmark index down by 1,424 points from its intra-day high. It closed at 164,445, posting a decline of 1,242 points. The correction was largely attributed to institutional portfolio rebalancing and profit-taking at elevated levels following recent historic rally, Topline said.
Overall trading volumes improved, with 3.08 billion shares changing hands compared with 1.53 billion in the previous session. The value of shares traded stood at Rs50.6 billion. Shares of 484 companies were traded, of which 174 closed higher, 269 declined and 41 remained unchanged.
K-Electric led the volumes with 1.02 billion shares, gaining Rs0.05 to close at Rs7.70. It was followed by WorldCall Telecom, which saw trading in 953.7 million shares, up Rs0.35 to close at Rs2.09 and Telecard Limited, which recorded volumes of 99.9 million shares, gaining Rs1.03 to close at Rs11.34.
Foreign investors sold shares worth Rs1.1 billion, the National Clearing Company reported.