Benchmark index trims intraday losses after crude oil retreats from near-$100 levels
KARACHI: The Pakistan Stock Exchange (PSX) ended lower on Friday as the KSE-100 Index fell by 718 points, with a sharp rise in international crude oil prices weighing on investor sentiment before a late-session recovery pared losses.
The benchmark KSE-100 Index settled at 171,021 points, down 718 points, or 0.42%, after trading largely in negative territory throughout the session.
Oil price surge pressures market
During intraday trading, the benchmark index declined by as much as 1.3% as international crude oil prices climbed to around $100 per barrel, fuelling concerns over Pakistan’s inflation outlook, rising import bill and external account.
However, investor sentiment improved in the second half of the session after crude oil prices retreated from their intraday highs, allowing the market to recover part of its earlier losses.
Analysts said fluctuations in oil prices remain a key driver of market sentiment, given Pakistan’s dependence on imported energy.
Heavyweight stocks weigh on benchmark
Among the largest negative contributors to the index were United Bank Limited (UBL), National Bank of Pakistan (NBP), Systems Limited (SYS), Habib Bank Limited (HBL) and Fauji Fertilizer Company (FFC).
These five stocks collectively erased approximately 436 points from the benchmark index.
Trading activity remains healthy
Despite the weak close, trading activity remained robust.
Maple Leaf Cement Factory (MLCF) topped the value chart with PKR 1.16 billion worth of shares traded, followed by DG Khan Cement (DGKC) at PKR 1.15 billion, Lucky Cement (LUCK) at PKR 894 million, Oil and Gas Development Company (OGDC) at PKR 851 million, and United Bank Limited (UBL) at PKR 779 million.
Overall, investors traded 573 million shares, while the total traded value reached approximately PKR 24 billion.
Market outlook
Market participants are expected to remain focused on developments in global energy markets, as movements in international crude oil prices continue to shape investor sentiment.
Analysts believe sustained high oil prices could increase inflationary pressures, widen Pakistan’s import bill and weigh on the country’s macroeconomic outlook, keeping the stock market volatile in the near term.