PSX closes under pressure amid global sell-off, recession fears

KARACHI: The Pakistan Stock Exchange (PSX) closed under pressure on Friday, despite an intraday rally, as global equities tumbled on mounting recession fears, analysts said.

The benchmark KSE-100 index shed 146.45 points (-0.12 per cent), settling at 118,791.66.

Despite weak global market sentiment, PSX surged to a record 120,796.67 points during intraday trading on expectations of improved corporate earnings following the government’s decision to reduce power tariffs and its commitment to resolving circular debt, Mohammad Sohail, CEO of Topline Securities, said.

Also read: SBP reserves rise by $69.5 million, while commercial banks face decline

However, the market reversed gains and closed lower amid a sharp decline in global equities, fears of a global recession, and concerns over potential U.S. tariffs on Pakistani exports. A slump in global crude oil prices, high KIBOR rates, and rupee instability also contributed to the bearish sentiment, Ahsan Mehanti, CEO of Arif Habib Commodities, told Hum News English.

Market Drivers & Sector Performance

Early optimism stemmed from the government’s 12% to 17% reduction in electricity tariffs for domestic consumers and industries, along with its pledge to eliminate circular debt within the next five years.

However, profit-taking ahead of the weekend led to selling pressure, causing the KSE-100 index to retreat by the closing bell, Topline Securities noted.

The banking sector saw strong investor interest, with UBL, MEBL, MCB, HBL, and BAHL contributing 1,020 points to the index.

Conversely, ENGROH, OGDC, HUBC, MARI, and PPL dragged the index down, collectively contributing -778 points.

Trading Activity

The top traded stocks by value were: BAFL Rs3.25 billion; PSO Rs2.93 billion; MARI  Rs1.39 billion and NBP Rs1.08 billion Total traded volume for the day stood at 547 million shares, with a traded valu

Syed Raza Hassan