KARACHI:

The Pakistan Stock Exchange (PSX) witnessed a mix of caution and volatility on Wednesday, where the benchmark KSE-100 index settled at 155,858, reflecting a decline of 318.64 points, or 0.20%.

During the session, the market showed significant intra-day fluctuations, with the index moving within a wide range of 2,972 points. The benchmark touched the intra-day high of 158,625 before gradually losing momentum and sliding to the low of 155,652.

Early gains were short-lived as selling pressure emerged, leading to repeated swings. Although the market attempted to recoup losses at intervals, such rebounds lacked strength to sustain the upward momentum. As a result, trading remained choppy and range bound as investors adopted a cautious stance, driven by the ongoing geopolitical uncertainty. By the close, the index recovered slightly from the day’s low but still stayed in the negative territory.

KTrade Securities equity trader Ahmed Sheraz wrote that the KSE-100 index fell 319 points in a volatile session marked by mixed investor sentiment. The market initially opened on a positive note but struggled to maintain momentum, with intermittent bouts of profit-taking keeping the index largely range bound throughout the day.

He said that global cues remained mixed, which also influenced local market direction. Overnight oil prices exhibited notable volatility, briefly trading between the high $70s and low $90s before easing to around the mid-$80s per barrel. US markets ended on a mixed note, while Asian equities displayed a mixed-to-positive trend, reflecting uncertainty about geopolitical developments and energy prices.

Sector-wise, investment banks and pharmaceutical firms contributed positively to the KSE-100 index, while profit-taking was observed in oil and gas companies. In terms of individual stocks, Engro Holdings, Bank AL Habib, Askari Bank, MCB Bank and Meezan Bank contributed positively to the index, whereas UBL, Pakistan Petroleum, OGDC and Mari Energies closed in the red.

Going forward, market sentiment is likely to remain volatile amid lingering geopolitical concerns and uncertainty surrounding oil price movements. Investors appear inclined to adopt a “sell-on-strength and buy-on-dips” approach, which may continue to keep the market range bound in the near term, Sheraz added.

JS Global analyst Mubashir Anis Naviwala observed that the KSE-100 index gained more than 2,400 points initially, reflecting strong buying interest. However, the market failed to sustain early gains as profit-taking emerged during the latter half of the session.

Selling pressure was mainly noted in banking, cement and fertiliser stocks. As a result, the index closed down by 319 points. Overall sentiment remained cautious as investors assessed developments in global oil markets and regional geopolitical risks, Naviwala added.

Topline Securities commented that the market largely traded range bound amid investor caution over continued volatility in international oil prices, which kept the overall sentiment mixed. Index-heavy stocks including United Bank, Pakistan Petroleum, Oil and Gas Development Company, Meezan Bank and Mari Petroleum emerged as key laggards, erasing 634 points. On the positive side, gains in Engro Holdings, Bank AL Habib and Askari Bank helped provide partial support, adding 577 points to the index, Topline concluded.

Overall trading volumes decreased to 441.9 million shares compared with Tuesday’s tally of 486.5 million. The value of traded shares stood at Rs25 billion.

Shares of 477 companies were traded. Of these, 216 rose, 201 fell and 60 remained unchanged.

The Bank of Punjab led the volumes with trading in 37.7 million shares, gaining Rs0.69 to close at Rs27.97. It was followed by K-Electric with 37.7 million shares, losing Rs0.24 to close at Rs7.49 and Cnergyico PK with 27.4 million shares, rising Rs0.14 to close at Rs7.06. Foreign investors sold shares worth Rs1.18 billion, the National Clearing Company reported.