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Market Overview
On Friday, the Pakistan Stock Exchange (PSX) witnessed continuous fluctuations, with the KSE-100 index ending the day flat despite some volatility. The market was under pressure due to the nearing end of the corporate earnings season and the futures rollover, which influenced investor sentiment.
Trading Session Highlights
The trading day started positively, with the KSE-100 index reaching its intra-day peak of 79,173.94 within the first hour. However, as the session progressed, bearish sentiments took over, driving the index below the 79,000 mark. Despite remaining largely in the positive zone, the index experienced profit-taking, dragging it to the intra-day low of 78,760.03.
Key players in the pharmaceutical sector provided some stability, helping the market close virtually unchanged. By the end of the session, the KSE-100 index had a slight increase of eight points, settling at 78,801.43.
Analyst Insights
Ahsan Mehanti, Managing Director of Arif Habib Corp, commented, “Stocks closed flat amid pressure as the earnings season neared its end and due to futures rollover.” He noted that earlier gains were wiped out by concerns over the rising power tariffs leading to industrial closures and the falling rupee. However, falling bond yields and record sales in the pharma sector acted as positive catalysts.
Topline Securities also reported that while the KSE-100 traded mostly in the positive zone, some profit-taking towards the end led to the flat close. The pharmaceutical sector was notably active, with eight out of 12 listed companies closing at their upper circuit. Investor interest was likely fueled by a pharma conference and the announcement of strong earnings by Haleon Pakistan and Glaxo.
Sectoral Performance
Arif Habib Limited (AHL) highlighted that the KSE-100 index gained 0.8% on a weekly basis, setting the stage for potential moves towards the 80,000 level in the coming week. United Bank Limited (+1.67%), Highnoon Laboratories (+9.95%), and Abbott Laboratories (+10%) were the biggest contributors to the index’s gains. On the other hand, Dawood Hercules (-3.2%), Lucky Cement (-1.38%), and Habib Metropolitan Bank (-2.88%) weighed down the index.
Trading Volumes
Trading volumes focused on small-cap stocks, with Kohinoor Spinning Mills leading with 81.7 million shares traded, followed by K-Electric and Pace Pakistan. Overall trading volumes decreased to 682.4 million shares from Thursday’s 804.3 million, with a total value of Rs18.2 billion.
Market Outlook
Looking ahead, JS Global analyst Mohammed Waqar Iqbal suggested that the market might continue its consolidation phase, though positive economic developments could potentially lift market sentiment.
Conclusion
The PSX ended the week on a flat note, with the KSE-100 index experiencing minor fluctuations. As the earnings season concludes, market participants are likely to remain cautious, keeping an eye on any upcoming economic developments that could influence trading activity.
