RECORDER REPORT

KARACHI: The Pakistan Stock Exchange (PSX) closed lower on Tuesday as investors opted to book profits, despite a 100 basis points cut in the policy rate by the State Bank of Pakistan (SBP) amid ongoing elevated border tensions.

The benchmark KSE-100 Index dropped by 533.73 points, or 0.47 percent, closing at 113,568.51 on Tuesday, down from 114,102.24 points on Monday. The market opened on a positive note following a 100-basis point cut in the key policy rate by the SBP, but later reversed gains to close in negative territory. Trading volume at the ready counter increased to 420.5 million shares, up from 399.5 million shares in the previous session

Analysts at Topline said the trading session opened on a buoyant note, as investor sentiment was lifted by a much-anticipated 100bps policy rate cut by the State Bank. Riding this wave of optimism, the benchmark index surged to an intraday high of 990 points. However, the early celebrations were short-lived.

As the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. The index ultimately succumbed to selling pressure, hitting an intraday low of 683 points. The reversal in market trajectory was primarily driven by renewed geopolitical tensions between Pakistan and India, which unsettled investors and overshadowed the central bank’s dovish stance, they added.

On Tuesday, BRIndex100 opened at 12,148.85 and finally closed at 12,110.27 points, which was 38.58 points or 0.32 percent lower than previous close. Total volume at BRIndex100was 373.225 million shares. BRIndex30 also declined by 55.13 points or 0.16 percent to settle at 35,338.96 points with a total volume of 241.249million shares.

Similarly, the total traded value on the ready counter surged to Rs 23.69 billion compared to Rs 19.8 billion in the previous session. The market capitalization decreased by Rs 48 billion to Rs 13.744 trillion. Out of 453 active scrips, 188 closed in positive and 218 in negative while the value of 47 stocks remained unchanged.

Sui South Gas was the volume leader with 54.3 million shares and closed at Rs 36.08 followed by K-Electric Ltd. that closed at Rs 4.38 with 42.2 million shares. Dewan Cement ranked third with share trading of 17.4 million shares and it closed at Rs 10.46.

PIA Holding Company LimitedB and Hoechst Pakistan Limited the top gainers increasing by Rs 528.33 and Rs 93.61 respectively to close at Rs 5,811.59 and Rs 3,294.41, while Unilever Pakistan Foods Limited and Nestle Pakistan Limited were the top losers declining by Rs 184.26 and Rs 172.36 respectively to close at Rs 22,815.74 and Rs 7,018.00.

According to Topline Research key heavyweight stocks that provided upward support included PPL, OGDC, PSO, UBL, and SYS, which cumulatively contributed +275 points to the index. On the other hand, notable laggards such as LUCK, HMB, HUBC, EFERT, and BAHL collectively shaved -427 points, weighing heavily on overall performance.

BR Automobile Assembler Index closed at 22,261.40 points, down by 81.72 points or 0.37 percent, with a total turnover of 6.45 million shares.BR Cement Index declined by 147.68 points, or 1.53 percent, to close at 9,521.61points, with a total turnover of 78.19 million shares.

BR Commercial Banks Index settled at 33,121.48points, registering a loss of 230.09 points or 0.69 percent, with a turnover of 17.70 million shares. BR Power Generation and Distribution Index settled at 19,058.83 points dropped by 93.69 points, or 0.49 percent, with a total turnover of 48.60 million shares.

In contrast, BR Oil and Gas Index gained 84.66 points, or 0.77 percent, to close at 11,092.20points, with a turnover of 88.43 million shares. The BR Technology & Communication Index closed at 4,857.04, rose by 29.21 points or 0.61 percent with a total turnover of 28.33 million shares.

Analysts at JS said that the KSE-100 opened on a strong note, with the benchmark Index gaining 990 points intraday before settling lower. The rally was fueled by the State Bank of Pakistan’s larger-than-expected 100bp rate cut to 11 percent, boosting investor sentiment. But later the selling pressure emerged due to geopolitical tensions.