Moaaz Manzoor

The Pakistan Stock Exchange (PSX) witnessed another bearish week as persistent selling pressure, weak corporate earnings, and heightened volatility kept investor sentiment subdued, dragging the benchmark index sharply lower.

The KSE-100 Index remained under pressure throughout the week, shedding 8,920 points to close at 179,604, down 2.46% week-on-week. This marked the third consecutive negative week for the market, with investors largely staying on the sidelines amid the absence of strong positive catalysts.

The index opened the week at 185,027, touched an intra-week high of 185,651, and slid to a low of 178,237 before settling below the key psychological support level of 180,000.

According to Arif Habib Limited (AHL), Banks led the negative sector-wise contributions, erasing 1,901 points, followed by Exploration and Production (1,298 points), Technology (484 points), Fertilizer (372 points), and Power (306 points). On the positive side, Investment Banks contributed 631 points, while Pharmaceuticals (36 points), Transport (5 points), Vanaspati and Allied (2 points), and Tobacco (1 point) offered marginal support.

On a scrip-wise basis, Oil and Gas Development Company Limited (OGDC) (578 points), Pakistan Petroleum Limited (PPL) (572 points), United Bank Limited (UBL) (410 points), Engro Fertilizers Limited (EFERT) (362 points), and Bank AL Habib Limited (BAHL) (359 points) weighed heavily on the index.

Conversely, Engro Holdings Limited (ENGROH) (631 points), Fauji Fertilizer Company Limited (FFC) (81 points), AGP Limited (AGP) (73 points), Indus Motor Company Limited (INDU) (31 points), and MCB Bank Limited (MCB) (25 points) emerged as the top positive contributors.

Market activity also weakened during the week, with average daily volumes declining by 15% week-on-week to 862 million shares. Average traded value dropped by 13% to USD 152 million.

Commenting on the market’s performance, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the PSX extended its losses in the final session, with the KSE-100 Index falling by 909 points (-0.50%) to close at 179,604, breaching the key psychological support level of 180,000 on a closing basis.

He noted that investor confidence remained subdued amid the lack of positive triggers, and the breakdown below this level could signal continued downside momentum in the near term.

Looking ahead, AHL expects the KSE-100 Index to witness temporary moderation as Ramadan begins, while the ongoing result season may provide support if companies post stronger-than-expected earnings. The brokerage noted that the index is currently trading at a price-to-earnings ratio of 9.1 times, offering a dividend yield of around 6.7%.

Meanwhile, AKD Securities Limited expects the market to recover as domestic and geopolitical uncertainties ease. The brokerage noted that investor focus will likely remain on upcoming financial results and improving macroeconomic indicators. It anticipates sentiment improving on the likelihood of foreign portfolio and direct investment inflows, supported by strengthening relations with the United States and Saudi Arabia.

Credit: INP-WealthPk