RECORDER REPORT

KARACHI: Pakistan’s equity market ended Tuesday’s session in negative territory as broad-based selling outweighed early optimism, leaving investors cautious despite improved liquidity and heightened participation across key sectors. The KSE-100 Index, the benchmark for the Pakistan Stock Exchange (PSX), slipped 294.05 points, or 0.17 percent, to close at 170,447.30 points, down from 170,741.35 points in the previous session. Intraday volatility was pronounced, with the index rising to a session high of 171,922.60 points before retreating to a low of 170,191.98 points, reflecting strong initial buying but limited follow-through.

The BRIndex100 edged down by 9.04 points, or 0.05 percent, to 18,014.98 points, with a total volume of 945.09 million shares, and the BRIndex30 closed 130.67 points lower, or 0.22 percent, at 58,953.25 points, on 565.79 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Limited, said that following the State Bank of Pakistan’s surprise 50 basis points rate cut Monday, the PSX delivered an unexpected outcome by closing in the red, contrary to widespread positive expectations. The market had opened on a strong footing, carrying forward optimism from the SBP’s policy easing, which contrasted with market expectations of a status quo.

“Broad-based buying, particularly in cyclical stocks, was observed during the early hours,” Najib noted. “However, likely institutional profit-taking near intraday highs weighed on sentiment, reversing early gains and pushing the benchmark into negative territory by the close.”

Total market capitalization at the close fell to Rs19.37 trillion, down from Rs19.41 trillion in the previous session, reflecting net price erosion in heavyweight stocks despite higher volumes.

Among sectors, banking and power generation stocks provided support, cushioning total market value losses, whereas oil and gas, cement, and technology & communication sectors dragged the overall capitalization lower. For instance, declines in OGDC, PPL, FFC, SYS, and DHPL collectively shaved off significant market cap, while gains in UBL, BOP, NBP, KAPCO, and KTML helped offset some of the losses.

Analysts noted that, despite improved traded volumes of 1.17 billion shares and increased turnover of Rs53.47 billion. The capital base remains concentrated, with the top 10 companies accounting for nearly 35–40 percent of total market cap, highlighting the continued influence of heavyweight stocks on index movements.

Trading volumes were led by Pakistan International Bulk Terminal (PIBT) with 101.81 million shares, closing at Rs17.75, followed by Bank of Punjab with 88.67 million shares, settling at Rs37.11, and TPL Properties with 80.37 million shares, ending at Rs12.56. Other actively traded stocks included TPL Corporation, WorldCall Telecom, Crescent Star Insurance, PIA Holding Company, First National Equities, Fast Cables, and PTCL, reflecting broad participation across multiple sectors.

On the price front, Unilever Pakistan Foods Limited led gains, rising Rs125 to Rs29,125, while Dawood Lawrencepur Limited advanced Rs63.52 to Rs698.68. Among the losers, PIA Holding Company Limited-B declined Rs896 to Rs23,200, and Hoechst Pakistan Limited shed Rs292.06, ending at Rs4,516.93.

The BR sector indices showed similar divergence. The BR Automobile Assembler Index gained 156.42 points, or 0.65 percent, to 24,141.94 points, while the BR Cement Index fell 124.73 points, or 0.87 percent, to 14,237.74 points.

The BR Commercial Banks Index advanced 393.32 points, or 0.79 percent, to 50,107.93 points, while the BR Power Generation and Distribution Index rose 159.51 points, or 0.59 percent, to 27,382.33 points.

On the downside, the BR Oil and Gas Index declined 153.38 points, or 1.04 percent, to 14,650.60 points, and the BR Technology & Communication Index lost 61.31 points, or 1.46 percent, to 4,151.38 points, reflecting continued pressure in energy and technology stocks.

Overall, the session reflected a market balancing optimism from policy support against profit-taking and sector-specific pressures, leaving investors selective in their buying decisions.