The share market of Pakistan Stock Exchange (PSX) witnessed a notable decline of 117 points on Friday as selling pressure was observed across various sectors.
The benchmark KSE-100 index closed at 42,531 points, down from the previous day’s 42,647 points.
Analysts at Arif Habib Limited reported that the share market opened on a positive note, gaining 98 points with 6.3 million shares traded at the opening bell. However, the optimism was short-lived as the index fluctuated between a low of -190 points and a high of +222 points throughout the two sessions at the share market. The day concluded with the index down by 105 points (unadjusted) by the end of the second session.
The initial session saw selling pressure driven by profit booking in sectors such as Exploration & Production (E&P), Cement, Steel, and Pharmaceuticals at the share market. However, buying activity in the Fertilizer and Banking sectors helped cushion the overall decline, allowing the index to post some gains.
The second session of the stock market was notably affected by Pakistan Petroleum Limited (PPL) announcing its financial results, which fell below market expectations, leading to a drop in its stock price. The Oil & Gas Marketing Companies (O&GMCs) sector topped the volumes with 67.7 million shares traded, followed by the Refinery sector with 65.5 million shares and the Technology sector with 47.6 million shares.
Among individual stocks, HASCOL led the trading volume with 59.9 million shares, followed by BYCO with 54.5 million shares, and PIBTL with 25.5 million shares.
Sector-wise, the Banking sector contributed positively at the share market with +36 points, Fertilizer added +24 points, and Power gained +22 points. Conversely, E&P contributed negatively with -59 points, Cement with -56 points, and Food with -26 points.
Overall the stock market volumes saw a significant decline from 884.9 million shares to 526.2 million shares, a drop of 41 percent Day-on-Day (DoD). The average traded value also decreased by 35 percent, reaching USD 105.7 million compared to the previous USD 163.2 million.
Key stocks that contributed positively to the index included UBL (+32 points), ENGRO (+29 points), HUBC (+21 points), HASCOL (+12 points), and HBL (+12 points). On the negative side, PPL contributed -41 points, LUCK -24 points, NESTLE -17 points, EFERT -13 points, and OGDC -12 points.
The decline highlights the cautious sentiment prevailing among investors amid mixed corporate earnings announcements and ongoing economic uncertainties. The share market participants are advised to closely monitor upcoming financial results and sector-specific developments as they navigate the current volatile trading environment.