RECORDER REPORT

KARACHI: Pakistan Stock Exchange (PSX) closed lower on Wednesday as reports of negotiations between the petroleum ministry and local refineries over a possible reduction in diesel prices triggered selling in energy stocks, weighing on the broader market amid continued volatility in international energy markets.

The benchmark KSE-100 Index declined 1,109.15 points, or 0.62 percent, to settle at 176,846.36 points, compared with 177,955.51 points in the previous session. The index remained volatile during the session, touching an intraday high of 178,942.31 points before falling to a low of 176,638.11 points.

Business Recorder’s market indices also reflected the overall weakness. The BRIndex100 declined 136.28 points, or 0.69%, to close at 19,482.99 points, with turnover of 656.84 million shares. The BRIndex30 fell 175.22 points, or 0.24%, to 72,088.97 points on turnover of 416.59 million shares.

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, the market opened on a positive note but lost momentum after reports emerged regarding negotiations between the petroleum minister and local refineries to reduce diesel prices. He said the news triggered broad-based selling in refinery stocks against the backdrop of elevated fuel costs and disruptions in international energy markets, eventually weighing on the broader market.

The selling pressure was concentrated in several heavyweight stocks. United Bank Limited (UBL), Engro Holdings (ENGROH), Habib Bank Limited (HBL), Fauji Fertilizer Company (FFC), Attock Refinery Limited (ATRL), Meezan Bank Limited (MEBL), Mari Petroleum Company Limited (MARI), Systems Limited (SYS), Cnergyico PK (CNERGY) and National Bank of Pakistan (NBP) collectively dragged the KSE-100 Index down by approximately 859 points.

Market breadth remained negative, with 271 stocks declining against 185 advancing, while 40 remained unchanged out of 496 active issues.

Trading activity on the Ready Market contracted significantly, with 787.89 million shares changing hands at a traded value of Rs39.57 billion. Aggregate market capitalisation declined to Rs19.81 trillion from Rs19.91 trillion.

Cnergyico PK again remained the most actively traded stock, with 217.46 million shares changing hands, closing at Rs14.01. Fast Cables Ltd followed with 27.38 million shares at Rs28.79, while Aisha Steel Mills recorded 27.21 million shares and closed at Rs15.29.

On the price-movement front, Unilever Pakistan Foods Limited was the leading gainer, advancing Rs75.88 to close at Rs25,273.97 per share. Hoechst Pakistan Limited followed, gaining Rs73.01 to Rs4,073.00.

Attock Refinery Limited recorded the largest decline, falling Rs51.31 to Rs1,064.03 per share, while The Thal Industries Corporation Limited declined Rs45.39 to close at Rs1,365.21.

Among sectoral indices, the BR Commercial Banks Index declined 657.58 points, or 1.04%, to 62,442.97 points, with 40.90 million shares traded. The BR Power Generation and Distribution Index fell 127.68 points, or 0.48%, to 26,700.01 points on 34.77 million shares.

The BR Automobile Assembler Index decreased 106.96 points, or 0.45%, to 23,651.03 points, while the BR Cement Index declined 34.28 points, or 0.27%, to 12,437.64 points. The BR Oil and Gas Index eased 14.59 points, or 0.10%, to 15,227.80 points, with turnover of 75.50 million shares.

The BR Tech. & Comm. Index also closed lower, at 3,606.89 with a net negative change of 1.83 points or 0.05% and a total turnover remained 47.89 million shares.

The session’s performance reflected the sensitivity of energy stocks to potential changes in domestic fuel pricing. With refinery stocks among the key areas of selling pressure, the reports of possible diesel price reductions emerged as a significant factor behind the day’s weakness, while broader investor sentiment remained influenced by developments in international energy markets.

According to Ali Najib of Arif Habib Ltd, heightened volatility and selective profit-taking are expected to persist, with geopolitical developments and international oil prices likely to remain important drivers of market direction.