Investors cautious amid geopolitical uncertainty; global cues remained mixed, influencing local market direction
KARACHI:
The Pakistan Stock Exchange (PSX) witnessed a mix of volatility and jitters on Wednesday, with the benchmark KSE-100 index settling at 155,858, reflecting a decline of 318.64 points, or 0.20%, compared to the previous close.
During the session, the market showed significant intra-day fluctuations as the index moved within a wide range of 2,972 points. The benchmark touched the intra-day high of 158,624 points before gradually losing momentum and sliding to the low of 155,652 points.
Early gains were short-lived as selling pressure emerged, leading to repeated swings throughout the day.
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Although the market attempted minor recoveries at intervals, these rebounds lacked strength to sustain the upward movement. As a result, trading largely remained choppy and range bound, with investors adopting a cautious stance amid ongoing geopolitical uncertainty.
By the close of the session, the index managed to recover slightly from the day’s low but still ended in negative territory, reflecting the prevailing cautious sentiment.
KTrade Securities equity trader Ahmed Sheraz wrote that the benchmark KSE-100 index closed at 155,858, declining by 318 points (-0.20%) 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.
Additionally, 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.
Meanwhile, US markets ended on a mixed note, while Asian equities displayed a mixed-to-positive trend, reflecting ongoing uncertainty around geopolitical developments and energy prices.
Sector-wise, the market showed a mixed performance. Investment banks and pharmaceutical stocks contributed positively to the index, while profit-taking was observed in the oil and gas sector.
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In terms of specific stocks, Engro Holdings, Bank Al Habib, Askari Bank, MCB Bank and Meezan Bank added points to the index, whereas UBL, PPL, OGDC and Mari Energies closed in the red, weighing on the overall performance, Sheraz said.
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.
From a strategy perspective, investors are advised to remain cautious and focus on fundamentally strong sectors such as banks, oil and gas, and high dividend-yielding stocks while avoiding excessive exposure to speculative plays and cyclical names, Sheraz added.
