Bears stage comeback at PSX amid global uncertainty
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- Syed Raza Hassan Web Desk
- Apr 16, 2025
KARACHI: After two bullish sessions earlier in the week, the Pakistan Stock Exchange (PSX) closed in the red on Wednesday, falling 755 points (-0.65 per cent) to settle at 116,020.10 following a volatile trading session.
“The market closed sharply lower during earnings season, amid a 3.5 per cent year-on-year contraction in large-scale manufacturing (LSM) growth for February 2025 and investor concerns over the outcome of US-China trade tariff talks,” Ahsan Mehanti, CEO at Arif Habib Commodities, told Hum News English.
Rupee instability and weak cement sales data for March 2025 also weighed on investor sentiment, contributing to the bearish close, he added.
The benchmark KSE-100 Index remained choppy throughout the session, with seasonal activity keeping investors cautious, according to a research note by Ismail Iqbal Securities.
Oil and gas exploration, technology and communication, and oil marketing companies were the major laggards, collectively pulling the index down by 451 points, the note added.
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Despite the downtrend, Fitch Ratings’ recent upgrade of Pakistan’s credit rating to B- from CCC+ could help support sentiment going forward, Chase Securities noted.
Energy stocks remained under pressure despite a Rs1.2 trillion circular debt settlement plan. Pakistan State Oil (PSO) lost 2.43 per cent, Oil and Gas Development Company (OGDC) fell 1.22 per cent, Pakistan Petroleum Limited (PPL) shed 1.76 per cent, and Mari Petroleum declined 2.51 per cent.
“The market saw a hot-and-cold session, reflecting a mix of optimism and caution,” Chase Securities said. The index surged as much as 648 points in early trade before losing momentum in the second half as profit-taking set in, dragging the index to an intraday low of 999 points, according to Topline Securities.
“United Bank Limited (UBL) posted impressive quarterly results, initially lifting its stock price by nearly 7 per cent, though it eventually closed just 1 per cent higher due to overall market pressure,” said Mohammad Rizwan, Director at Chase Securities.
Trading activity remained robust, with 481 million shares changing hands and total market turnover reaching Rs38.5 billion. Cnergyico PK led the volumes chart, with 35 million shares traded.
