Key Takeaways
- The Pakistan Stock Exchange (PSX) gained for the second consecutive session.
- Topline Securities reported the KSE-100 index closed at 171,402.08 points, up 0.15%.
- Market sentiment supported by easing international oil prices and hopes of US-Iran de-escalation.
The Pakistan Stock Exchange (PSX) managed to close in the green for the second consecutive session, despite ongoing geopolitical and economic uncertainties. The KSE-100 index closed at 171,402.08 points, marking a rise of 248.92 points, or 0.15%.
The index reached an intraday high of 171,680.74 points and an intraday low of 170,866.94, reflecting the volatility in the market. Market sentiment was bolstered by the easing of international oil prices and expectations of potential US-Iran de-escalation, which alleviated concerns about inflation and Pakistan’s external account.
However, ongoing geopolitical uncertainty kept investors cautious, limiting broader market gains. Mari Energies, Pakistan Petroleum, Hub Power, Fauji Cement Company Ltd, and Lucky Cement were the major contributors to the index, collectively adding 233 points. By contrast, Bank Al-Habib, Fauji Fertiliser, and MCB Bank were the main drags, collectively shaving around 172 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, observed that market sentiment was initially fragile. However, value hunters played a significant role in lifting the index as Saudi Arabia sought to resume flows through a vital pipeline, while diplomatic efforts to reopen the Strait of Hormuz gained momentum.
On the corporate front, Sitara Petroleum Service Ltd reported fiscal year 2026 earnings of Rs4,976 million (EPS: Rs3.0), up 69% year-on-year (YoY). The company's fourth quarter earnings for fiscal year 2026 declined 10% YoY to Rs570m (EPS: Rs0.3), mainly due to inventory losses, lower government oil (GO) supplies, and the absence of volumetric discounts. Dealer margins remained unchanged at Rs8.64 per litre, and the company announced a final cash dividend of Re1 per share.
Investor participation weakened as the trading volume dipped 7.36% to 641.8 million shares, and the traded value declined 8.13% to Rs18.4 billion. The market remained closely watched as geopolitical tensions and economic factors continue to influence investor sentiment.
The performance of the PSX reflects the complex interplay of global and local factors, with value hunters playing a crucial role in the market's performance. As geopolitical tensions ease, market sentiment is expected to improve, potentially leading to further gains in the coming weeks.
Market sentiment was initially fragile. However, value hunters lifted the index as Saudi Arabia sought to resume flows through a vital pipeline, while diplomatic efforts to reopen the Strait of Hormuz gained momentum.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd
