Mild pullback follows record surge at PSX

The Pakistan Stock Exchange (PSX) on Thursday witnessed a volatile yet largely range-bound session following a record-breaking day in its history as the benchmark KSE-100 index slipped by around 300 points. The decline came after the previous session's sharp 9% surge, with investors adopting a cautious stance amid mixed signals and heightened geopolitical uncertainty, including Israel's attacks on Lebanon just after the truce between the US and Iran. The market experienced significant intraday swings, reflecting fragile sentiment, as participants engaged in profit-taking across key sectors while selectively accumulating stocks in cement and some blue-chip names. Despite early pressure, the index managed to recover part of its losses, indicating underlying resilience, though it settled marginally in the red. At the close of trading, the KSE-100 index posted a decline of 293.50 points, or 0.18%, and settled at 165,517.51. Arif Habib Limited (AHL) noted that the stock market witnessed a flat session following Wednesday's sharp 9% surge as investor activity remained cautious amid mixed signals. A total of 45 shares advanced while 55 declined, with notable positive contribution coming from UBL (+3.01%), Lucky Cement (+2.29%) and Fauji Cement (+7.86%). On the downside, Bank AL Habib (-3.7%), Mari Energies (-3.03%) and Hubco (-2.25%) exerted the most pressure on the index, limiting overall gains. Investor sentiment remained influenced by global developments as the White House announced direct talks with Iran, with US Vice President JD Vance expected to lead a delegation in Islamabad, despite continued fighting in the Middle East. Despite the weak opening that saw the KSE-100 index drop nearly 2%, the market showed resilience by holding above its 200-day moving average. The index was up around 10% on a week-on-week basis and remained on track to post its first positive weekly close since January, reflecting improved investor confidence in the latter part of the week. Topline Securities, in its review, mentioned that the KSE-100 index recorded a modest decline of 293 points in a highly volatile trading session. The index exhibited significant fluctuations throughout the day, reaching intra-day high of 166,962 points and low of 161,993 points, reflecting heightened investor uncertainty. The downward pressure was primarily driven by index-heavy stocks, with BAHL, MARI, HUBC, FFC and MCB emerging as key laggards, collectively erasing 809 points from the benchmark. Conversely, selective buying interest in UBL, LUCK and FCCL provided partial support, contributing a cumulative 568 points and aiding the index in recovering a portion of its intra-day losses. "Investor sentiment remained fragile throughout the session, with the index swinging between gains and losses before settling marginally in the red. Profit-taking was observed across key sectors, notably in banks and E&Ps, while selective buying interest in cement and select scrips provided partial support," commented Ahmed Sheraz of KTrade Securities. Going forward, market direction will remain closely tied to evolving geopolitical developments, particularly the outcome of upcoming Pakistan-facilitated talks between the US and Iran. While near-term volatility may persist, any meaningful progress on the diplomatic front could help stabilise sentiment. Until clarity emerges, a cautious and selective approach is advised, he added. Overall trading volume was recorded at 888.57 million shares compared with the previous session's tally of 1.25 billion. The value of shares traded during the day was Rs54.28 billion. Shares of 489 companies were traded. Of these, 162 stocks closed higher, 290 fell and 37 remained unchanged. WorldCall Telecom was the volume leader with trading in 105.84 million shares, gaining Rs0.01 to close at Rs1.37. It was followed by First National Equities with 81.61 million shares, losing Rs0.11 to close at Rs1.47 and K-Electric with 63.97 million shares, losing Rs0.29 to close at Rs7.67. Foreign investors bought shares worth Rs340.2 million, the National Clearing Company reported.