Refinery stocks outperform after CCoE clears amendments to Pakistan Oil Refining Policy 2023
KARACHI: The Pakistan Stock Exchange (PSX) closed lower on Tuesday as investors booked profits following a strong early rally, with the benchmark KSE-100 Index shedding 638 points, or 0.36%, to settle at 177,623.
The market experienced a volatile trading session, with the benchmark opening in positive territory and climbing as much as 860 points during intraday trading on robust buying interest. However, profit-taking emerged in the second half of the session, reversing the gains and pulling the index into negative territory.
The KSE-100 later touched an intraday low of 827 points before recovering part of its losses by the close, reflecting cautious investor sentiment despite positive developments in the refinery sector.
Refinery stocks shine on policy breakthrough
Refinery stocks remained the centre of investor attention after reports indicated that the Cabinet Committee on Energy (CCoE) had approved amendments to the Pakistan Oil Refining Policy 2023, removing the remaining hurdles that had delayed refinery upgrade agreements since the policy’s introduction in August 2023.
The development triggered renewed buying across the refining sector, with Attock Refinery Limited (ATRL), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL) and Cnergyico (CNERGY) outperforming the broader market and ending the session with notable gains.
Market participants viewed the policy amendments as a positive step towards encouraging refinery upgrades, improving fuel quality standards and attracting fresh investment into Pakistan’s energy sector.
Heavyweight stocks weigh on market
Despite the rally in refinery shares, losses in heavyweight stocks outweighed sector-specific gains.
United Bank Limited (UBL), Oil and Gas Development Company (OGDC), Hub Power Company (HUBC), Pakistan Petroleum Limited (PPL) and Bank of Punjab (BOP) emerged as the largest negative contributors, collectively dragging the benchmark index down by approximately 318 points.
The selling pressure reflected investors’ decision to lock in profits following the market’s strong recovery in recent sessions.
Trading activity remains robust
Trading activity remained healthy, although it moderated compared with the previous session.
Total traded volume stood at 958 million shares, while the total traded value reached approximately Rs41.5 billion.
Among the most actively traded stocks, Cnergyico (CNERGY) topped the volume chart, with nearly 273 million shares changing hands, highlighting strong investor interest in refinery-related stocks.
Outlook
Analysts expect investor sentiment to remain driven by corporate earnings announcements, progress on the implementation of the Pakistan Oil Refining Policy 2023, and key macroeconomic developments. Market participants will also continue monitoring interest rate expectations, inflation trends and external sector indicators for further direction in the coming trading sessions.