Despite signs of economic and political stability — including a current account surplus and the recent Pak-Afghan agreement — the Pakistan Stock Exchange (PSX) ended the week on a bearish note, with selling pressure dominating investor sentiment.
According to market analysts, profit-taking by foreign investors and mutual funds, coupled with lower-than-expected corporate results, kept the market under pressure throughout the week.
Market remains under selling pressure
The week began on a positive note as the domestic current account surplus initially lifted market sentiment. However, the optimism faded quickly due to continued tensions along the Pak-Afghan border and cautious trading behavior.
Foreign investors and mutual funds engaged in profit-taking, while large investors and companies showed buying interest in anticipation of a potential bullish trend next week.
Meanwhile, mutual funds and insurance sector players largely stayed on the sidelines, limiting market recovery.
Two bullish and three bearish sessions
Out of five trading sessions, the PSX witnessed two bullish days and three bearish days. Brokers attributed the market’s volatility to weak quarterly results from key banking and corporate sectors, which disappointed investors and led to uncertainty.
During the week, the benchmark KSE-100 index struggled to maintain crucial resistance levels of 168,000, 166,000, 165,000, and 164,000 points.
The index ultimately closed at 163,304 points, down 502 points week-on-week. The highest level recorded during the week was 168,414 points, while the lowest level fell to 163,041 points.
Trading volume and value decline
The average daily trading volume dropped by 18.8%, reaching 1.48 billion shares, compared to the previous week. Similarly, the average daily trading value declined by 10.6%, settling at $177 million.
Market capitalization also shrank by Rs154 billion, closing at Rs18,814 billion by the end of the week.
According to brokers, several banking and corporate entities posted financial results below market expectations, triggering investor disappointment and contributing to the selling spree.
“Investors were looking for stronger earnings reports, but the numbers fell short, which dented confidence,” said one Karachi-based broker.
