KSE-100 settles at 168,580 as cautious sentiment emerges; oil prices remain above $100 amid Mideast supply risks
KARACHI:
The Pakistan Stock Exchange (PSX) struggled to hold early gains on Wednesday as a cautious tone emerged in the latter part of the session, although a late recovery helped the benchmark close marginally higher. It settled 120.30 points, or 0.07%, higher at 168,580.41.
The benchmark KSE-100 Index opened in positive territory but turned volatile later in the session as profit-taking erased much of its morning gains. During the session, it hit an intraday high of 169,271.99 and a low of 168,065.87.
Market sentiment was influenced by continued hopes of renewed talks between the government and the Pakistan Tehreek-e-Insaf (PTI), although the opposition party has so far described Prime Minister Shehbaz Sharif’s proposal as a “mere offer” and called for a formal approach to its parliamentary leaders. The prospect of political engagement provided some support but failed to prevent the market from losing momentum as the session progressed.
The market also tracked global oil developments, with crude prices rising and Brent futures holding above $100 a barrel amid continuing Middle East supply risks and a storm heading towards oil-producing regions in the United States. Brent crude futures rose $1.22, or 1.21%, to $101.80 a barrel by 1008 GMT, while US West Texas Intermediate (WTI) crude gained 46 cents, or 0.51%, to $89.90.
Read: PSX rallies over easing political woes
According to KASB KTrade’s equity trader Ahmed Sheraz, the KSE-100 Index closed marginally higher at 168,580, gaining 120 points (+0.07%0 day-on-day (DoD), in a mixed and cautious session with 244 million shares traded, while overall index contributions remained mixed.
Sector-wise, oil and gas and fertiliser segment remained under pressure, while technology stocks provided support. Among key names, Mari Energies, Meezan Bank and Lucky Cement closed negative whereas UBL, Systems, Pakistan State Oil and PTC finished in the green. The muted index performance reflected a lack of clear direction despite healthy market activity.
Going forward, elevated international oil prices remain the key overhang, with Brent trading between $101-103 barrel per day, raising concerns for Pakistan as an oil-importing economy. The prolonged uncertainty around the Strait of Hormuz could keep volatility elevated, while the relatively cooler domestic political environment offers some relief as government-opposition talks may potentially resume.
“Overall, we expect the market to remain choppy and directionless until greater clarity emerges on the geopolitical and oil-price front,” Sheraz wrote.
Overall, trading volume rose to 586.8 million shares from Tuesday’s 432 million, while the value of traded shares stood at Rs22.3 billion. Of the 501 companies traded in the ready market, 272 stocks closed higher, 184 declined and 45 remained unchanged.
K-Electric became the volume leader with trading in 82.7 million shares, gaining Rs0.45 to close at Rs6.04.
