PSX falls for second day on speculation

Stocks closed lower on Friday as profit-taking in the latest session erased early gains, pushing the benchmark KSE-100 down about 1,130 points to 184,410.

Market participants initially maintained a positive stance during the morning trade. However, selling pressure intensified in the second half as investors chose to hold profits ahead of the weekend, resulting in another negative close for CY26.

In late trade, the KSE-100 index was down 1,133.34 points, or 0.61%, at 184,409.67.

“Market sentiment remained positive during the morning session; however, profit-taking and selling pressures prevailed in the second half, forcing the benchmark to register yet another negative close for LK26,” said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL).

AHL noted that the KSE-100 underwent further consolidation within the 184,000-185,000 support zone and ended a volatile week in which the benchmark managed to post a weekly gain of around 3%.

Friday’s session reflected selective buying, with 69 stocks advancing against 30 decliners. Fauji Fertilizer Company (+0.42%), Adamjee Insurance (+4.17%) and MCB Bank (+0.69%) were the top contributors to the index’s gains. However, upside momentum was capped by pressure from heavyweights, with Hubco (-2.02%), Lucky Cement (-1.88%) and Engro Holdings (-1.07%) emerging as the biggest decliners in the index.

At the macro level, sentiment received support from external inflows as Pakistan’s remittances abroad rose 16.5% year-on-year in December to $3.6 billion, which boosted optimism about currency stability.

In the wider regional context, an analysis by S&P Global Market Intelligence highlighted that smaller Pakistani banks delivered some of the strongest total shareholder returns in the Asia-Pacific region in 2025, supported by a sharp rally in local equities and improving macroeconomic indicators.

Looking ahead, market participants expect the 184,000-185,000 level to remain a key support zone, with the index likely to continue its upward trajectory towards 188,000-190,000 points next week. However, the primary risk to the upside outlook remains geopolitical developments in the Middle East, which could cause volatility and renewed risk aversion.

Topline Market Review said the KSE 100 traded largely in the negative zone to close at 184,410 (down 0.61%) as investors preferred to lock in profits ahead of the weekend. Top negative contributors to the index came from Hubco, Lucky Cement, Engro Holdings, NBP, Engro Fertilizers and OGDC, which shed 596 points.

In terms of trade value, FFC (Rs 2.14 billion), Pakistan Petroleum (Rs 1.88 billion), Pak Elektron (Rs 1.83 billion), Fauji Foods (Rs 1.68 billion), NBP (Rs 1.67 billion) and Systems Ltd (Rs 1.64 billion) dominated the activity.

“Profit-taking continued on the PSX, where the benchmark closed down 1,133 points at 184,410,” noted Nawaz Ali of JS Global.

The index fell to an intraday low of 183,701, down 1,842 points. Broad-based sales pressure was seen across most industries. The major contributors to the fall were Hubco, Lucky Cement, Engro Holdings, NBP and Engro Fertilisers, which collectively shed 530 points from the index.

“Going forward, we recommend investors capitalize on attractive valuations and selectively build positions at lower levels,” he said.

The total traded volume was recorded at 1.03 billion shares compared to the previous tally of 1.43 billion. The value of shares traded during the day was Rs 52.9 billion.

Shares of 483 companies were traded. Of these, 162 stocks closed higher, 271 declined and 50 remained unchanged.

Fauji Foods was the volume leader with 75.8 million shares traded, gaining Rs 0.87 to close at Rs 22.02. It was followed by Hascol Petroleum with 68.3 million shares, gaining Rs 0.03 to close at Rs 20.18 and Media Times with 56.2 million shares, gaining Rs 0.80 to close at Rs 7.61.

Foreign investors sold shares worth Rs 8.8 billion, the National Clearing Company said.