Benchmark index pares 2,442-point intraday surge amid refinery weakness and geopolitical concerns
KARACHI: The KSE-100 index ended marginally higher on Tuesday as investors locked in profits after a strong early rally, with the benchmark recovering to close in positive territory despite lingering geopolitical uncertainty and weakness in refinery stocks.
The benchmark KSE-100 index settled at 176,133 points, gaining 205 points, or 0.12%, after giving up most of its intraday advance as broad-based selling emerged during the second half of the trading session.
Early rally fades on profit-taking
The Pakistan Stock Exchange (PSX) extended the previous session’s positive momentum at the open, with the benchmark index surging by as much as 2,442 points during intraday trading as investors initially responded to improved market sentiment.
However, the rally proved short-lived as participants opted to book profits at higher levels, triggering selling across multiple sectors and erasing much of the day’s gains.
Analysts said the cautious close reflected investor concerns over geopolitical developments in the Middle East and their potential implications for international oil prices, inflation and foreign investment flows.
Refinery shares weigh on market
Refinery stocks remained under pressure throughout the session amid market speculation that the government’s long-awaited refinery policy could face further delays.
Despite weakness in the energy segment, selective buying in heavyweight banking and blue-chip stocks helped keep the KSE-100 index in positive territory.
Among the largest contributors to the benchmark’s gains were United Bank Limited (UBL), Engro Holdings (ENGROH), Meezan Bank (MEBL), Lucky Cement (LUCK) and MCB Bank (MCB), which together added around 258 points to the index.
Meanwhile, Oil & Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), Maple Leaf Cement Factory (MLCF), Cnergyico (CNERGY) and DG Khan Cement (DGKC) collectively shaved approximately 178 points off the benchmark.
Trading activity remains strong
Market activity remained robust despite the heightened volatility.
Investors traded 1.003 billion shares during the session, while the total traded value reached approximately Rs35.7 billion.
Cnergyico (CNERGY) topped the volume chart, with nearly 263 million shares changing hands.
Outlook
Analysts expect the KSE-100 index to remain sensitive to developments in the Middle East, movements in international crude oil prices and domestic policy announcements.
Any progress on key economic reforms or easing geopolitical tensions could improve investor confidence, while prolonged uncertainty may continue to fuel volatility in the sessions ahead.