Key Takeaways
- The KSE-100 index closed up by 205.83 points (0.12%) at 176,133.56.
- Investor sentiment remained cautious due to geopolitical tensions and energy market uncertainties.
- Refinery stocks faced selling pressure amid speculation of delayed policy announcements.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index made marginal gains on Tuesday, closing at 176,133.56 points, up by 205.83 points or 0.12% from the previous close. The market experienced a strong start but saw a significant dip in the latter half of the session.
Topline Securities Ltd noted that the initial optimism was short-lived as participants opted to lock in gains at elevated levels, leading to broad-based profit-taking during the afternoon trading hours. The subdued closing reflected cautious investor sentiment amid geopolitical tensions and persistent uncertainty surrounding global energy markets.
Awais Ashraf, director of research at AKD Securities, observed that the market extended its recovery from the previous session as oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran. He added that investor sentiment was also supported by optimism surrounding the ongoing earnings season, with several key sectors expected to post stronger-than-usual results.
The KSE-100 had opened in the green, reaching an intraday high of 178,370.45 at 10:09am, but it dropped below the 177,000-point level by 1:56pm. By closing time, the index was down from its earlier highs, reflecting a cautious approach among market participants.
Topline Securities further observed that refinery stocks bore the brunt of selling pressure amid speculation that the long-awaited refinery policy could face further delays. This uncertainty added to the overall cautious sentiment in the market.
The global energy markets continued to influence Pakistan’s stock performance, with Brent crude futures rising $1.62 or 1.8% to $90.84 a barrel by 4:52pm PKT, and US West Texas Intermediate crude contract for September delivery increasing $1.48 or 1.8% to $83.96.
The stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.
The strong start proved short-lived, as participants opted to lock in gains at elevated levels, triggering broad-based profit-taking during the latter half of the session.
Topline Securities Ltd, Brokerage house
Investor sentiment is also being supported by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery and textile companies expected to post stronger-than-usual results.
Awais Ashraf, Director of research at AKD Securities
