Profit-Taking, Weak Bank Earnings Push PSX Deep into Red

Index Sheds Nearly 2,000 Points Amid Volatile Trading

KARACHI:
The Pakistan Stock Exchange (PSX) witnessed a turbulent session on Thursday as the benchmark KSE-100 index tumbled by almost 2,000 points. The decline was largely fueled by profit-taking ahead of the futures rollover and disappointing financial results from key banks.

The trading day began on a strong note, with the index climbing to an intra-day high of 166,720 within the first hour. However, as the session progressed, selling pressure intensified, pulling the market down to an intra-day low of 164,395 before the close. The benchmark eventually settled at 164,590.41, down 1,962.87 points or 1.18%.

According to a report by Topline Securities, investor sentiment remained mixed, leading to significant volatility as the index fluctuated between the high of 166,720 and the low of 164,395. The brokerage attributed the market’s instability to pre-rollover profit-taking and lackluster earnings reports from Bank AL Habib and Bank Alfalah.

Major negative contributors included Bank AL Habib, Habib Metropolitan Bank, Lucky Cement, Hub Power, and Engro, which collectively shaved off around 1,019 points from the index. Despite the downturn, overall investor activity stayed robust, with trading volumes reaching 1.5 billion shares, Topline noted.

Arif Habib Limited (AHL) observed that selling pressure was particularly intense in the banking sector, leading to broad-based declines. Out of the KSE-100 index’s constituents, 24 stocks advanced, 74 declined, and two remained flat. Positive contributions came from MCB Bank (+1.07%), Interloop Limited (+5.82%), and Fauji Fertiliser Company (FFC) (+0.27%). Meanwhile, Bank AL Habib (-9.98%), Habib Metropolitan Bank (-5.89%), and Lucky Cement (-1.75%) were among the biggest drags on the index.

In corporate results, FFC posted a 9MCY25 earnings per share (EPS) of Rs40.50, marking a 14% year-on-year (YoY) rise, along with a Rs28.5 dividend per share. The company’s sales surged 18% YoY in 3QCY25, driven by strong demand for urea and DAP, which grew 14% and 17%, respectively.

Habib Bank Limited (HBL) reported 9MCY25 EPS of Rs34.96, up 19% YoY, supported by higher net interest income and non-funded income, according to AHL. Conversely, Faysal Bank’s profit declined, with an EPS of Rs10.25, down 24% YoY, amid reduced net interest income and rising operating expenses.

AHL added that the 166,000-point mark now represents a key resistance level, and the index needs to recover it to resume an upward trajectory. “The KSE-100 is currently trading in a congestion zone,” it said, noting that heading into the final session of the week, the index is up 0.48% so far.

Trading volume slipped slightly to 1.50 billion shares from 1.57 billion a day earlier, with the total traded value amounting to Rs49.5 billion.

Out of 474 listed companies, 147 closed higher, 291 declined, and 36 remained unchanged.

WorldCall Telecom led the activity chart with 162.2 million shares, inching up by one paisa to close at Rs2.09. It was followed by K-Electric, which traded 138.2 million shares, down 13 paisa to Rs6.08, and Telecard Ltd, which gained 12 paisa to Rs13.26 on 90.6 million shares.

Foreign investors were net sellers, offloading shares worth Rs539.2 million, as per data from the National Clearing Company of Pakistan Limited (NCCPL).