PSX opens positively, but succumbs to selling pressure

KARACHI: Pakistan Stock Exchange (PSX) benchmark KSE-100 index witnessed another bearish session despite opening on a positive note and gaining 159 points (0.19%), succumbing to selling pressure.

The index plunged to an intraday low of 743 points, eventually closing at 81,483, marking a 366-point (0.45%) decline. This downward shift was largely driven by profit-taking, particularly in key stocks such as Hub Power Company Limited (HUBC) (-4.25%) and Engro Fertilizers Limited (EFERT) (-1.99%), reshaping market sentiment. A broad sell-off in HUBC, EFERT, MCB Bank Limited (MCB), Pakistan Petroleum Limited (PPL), and Bank Alfalah Limited (BAFL) collectively dragged the index down by 400 points, according to Topline Securities.

Despite the negative trend, trading volumes remained robust, with 369 million shares traded, valued at Rs 17 billion. According to Topline Securities, Worldcall Telecom Limited (WTL) led the trading activity, with 39 million shares changing hands.

Stocks closed under pressure amid political noise and a weak rupee, said Ahsan Mehanti CEO of Arif Habib Commodities. Govt decision to review and terminate PPA with IPPs over capacity payment issue, surging circular debt and concerns over likely further action on banks for dollar manipulation played a catalyst role in the bearish close.

The index opened with a positive momentum and remained volatile throughout the session. The Index is currently trading near all-time highs and sustaining above major and minor moving averages, among the momentum oscillators, RSI (Relative Strength Index) is currently displaying a reading at 72.52, according to AKD Research.

The data suggest that the index may find initial support near 81,400. A break below-mentioned support can result in further weakness towards 81,100 and 80,800pts levels. Alternatively, the index can face resistance near 82,200 points initially and then head towards 82,500 and 82,800 areas. According to AKD, it is recommended to initiate buying positions risk defined below the support zone.