Trading at the Pakistan Stock Exchange (PSX) turned turbulent on Thursday as investors opted for profit-taking ahead of the futures contract rollover, leading to a steep fall in the benchmark KSE-100 index. The index lost nearly 2,000 points, weighed down by weaker-than-expected earnings from key banks and a general risk-off mood in the market.
The trading day began on a strong note, with the index touching an intra-day high of 166,720 points within the first hour, reflecting early optimism from retail and institutional investors. However, the upbeat momentum failed to sustain. As the session progressed, profit-booking pressure intensified, dragging the market down sharply. By the close of the session, the KSE-100 had plunged 1,962.87 points, or 1.18%, settling at 164,590.41 points after hitting an intra-day low of 164,395.
According to Topline Securities, the session reflected mixed investor sentiment, as the index oscillated between gains and losses amid uncertainty. The firm highlighted that the sell-off was primarily triggered by profit-taking ahead of the futures rollover week and disappointing quarterly results from key banks such as Bank AL Habib and Bank Alfalah. The two lenders, along with Habib Metropolitan Bank, Lucky Cement, Hub Power, and Engro, were among the major drags, collectively shaving off over 1,000 points from the index.
Despite the downturn, overall investor participation remained healthy. Total traded volume reached 1.50 billion shares, while the traded value stood at Rs49.5 billion, reflecting continued engagement from market participants despite the correction.
Arif Habib Limited (AHL) also reported heightened selling pressure across the banking sector, with most financial institutions witnessing declines. Out of the 100 index constituents, 24 advanced while 74 declined. MCB Bank (+1.07%), Interloop Limited (+5.82%), and Fauji Fertiliser Company (FFC, +0.27%) provided limited support to the index. In contrast, Bank AL Habib (-9.98%), Habib Metropolitan Bank (-5.89%), and Lucky Cement (-1.75%) emerged as the biggest losers of the day.
In terms of earnings announcements, FFC reported a 14% year-on-year rise in earnings per share (EPS) to Rs40.50 for the nine months of CY25, alongside a Rs28.5 per share dividend. Its net sales grew 18% on higher urea and di-ammonium phosphate (DAP) offtake. HBL announced a strong 19% YoY increase in EPS to Rs34.96, driven by robust net interest income and higher non-funded income, while declaring a Rs14 dividend per share. Conversely, Faysal Bank reported weaker results, with EPS declining 24% YoY to Rs10.25, mainly due to reduced net profit income and rising operating costs.
Market analysts noted that the 166,000 level remains a crucial resistance point for the KSE-100 index, suggesting that a recovery above this threshold could open the door for further upward momentum. However, until stability in earnings and macro indicators returns, the index is likely to remain range-bound within a congestion zone.
Overall, 474 companies traded shares during the session, with 147 closing higher, 291 ending in the red, and 36 remaining unchanged. WorldCall Telecom led the volume chart with 162.2 million shares, inching up one paisa to close at Rs2.09. K-Electric followed with 138.2 million shares, dropping 13 paisa to close at Rs6.08, while Telecard Limited traded 90.6 million shares, rising 12 paisa to end at Rs13.26.
Foreign investors offloaded shares worth Rs539.2 million, according to data from the National Clearing Company of Pakistan Limited (NCCPL), indicating cautious global sentiment amid local market volatility.
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