KARACHI:
Pakistan’s stock market extended its bearish spell on Friday as the benchmark KSE-100 index fell over 900 points amid disappointing corporate earnings and cautious investor sentiment during the ongoing result season.
Market activity remained subdued, while foreign investors offloaded shares worth Rs4.2 billion, adding to pressure on equities despite a late-session recovery that helped the index hold above key support levels. Major drags on the index included heavyweight stocks from cement, banking, fertiliser, technology, and oil and gas sectors, with Lucky Cement, UBL, OGDC, Systems Ltd, Engro Fertilisers and Engro Holdings collectively erasing hundreds of points.
Analysts attributed the market weakness to earnings falling short of expectations, though the index managed to sustain above crucial technical levels, keeping investors focused on upcoming developments and the 180,000-point mark as a decisive support-resistance zone.
At the close of trading, the KSE-100 index posted a decline of 908.92 points, or 0.50%, and settled at 179,603.73.
Arif Habib Limited (AHL) noted that the KSE-100 recorded its third consecutive weekly decline, losing 2.46% week-on-week. On Friday, the market breadth remained negative with 43 stocks advancing while 56 declined. Key positive contributors included Habib Metropolitan Bank (+4.68%), NBP (+1.72%) and K-Electric (+4.02%), whereas Lucky Cement (-2.54%), UBL (-1%), and OGDC (-1.91%) weighed on the index.
Among corporate developments, Pakistan Petroleum announced its 2QFY26 financial results, posting earnings per share of Rs7.46, down 26% year-on-year, along with a dividend of Rs2 per share. The earnings decline was attributed primarily to a 13.2% YoY drop in oil prices, higher operating expenses, reduced other income, and an elevated effective tax rate.
On the macro front, Pakistan attracted its largest monthly net foreign inflows into sovereign bonds since June 2024, with January inflows reaching $176 million compared to net withdrawals of $50 million in the same month of last year. Looking ahead, AHL highlighted an important week for the KSE-100, with the 180,000 level expected to determine whether it acts as a key support or resistance zone.
Topline’s market review noted that continuing its negative momentum, the KSE-100 largely traded in the negative zone to settle at 179,604 (down by 0.50%). The negativity can be attributed to the results season, where corporate earnings have fallen short of investors’ expectations.
The top negative contribution to the index came from Lucky Cement, UBL, OGDC, Systems Ltd, Engro Fertilisers and Engro Holdings, as they cumulatively erased 685 points. Traded value-wise, OGDC (Rs4.1 billion), Pakistan Petroleum (Rs3 billion), NBP (Rs2.7 billion), Lucky Cement (Rs1.87 billion), Engro Holdings (Rs1.7 billion) and Systems Ltd (Rs1.55 billion) dominated the activity, Topline said.
Muhammad Hasan Ather of JS Global said that the KSE-100 declined by 909 points, but managed to hold above key support levels. The market witnessed a late-session recovery amid the broader bearish trend, sustaining above the 178,500 support level. Major laggards included cement, fertiliser, oil & gas, and banking stocks. “We believe that any meaningful developments regarding the Reko Diq project will remain pivotal in shaping market sentiment going forward,” he said.
Nasheed Malik, Head of Research at Growth Securities, said foreign corporates led broad-based selling worth Rs4.2 billion across key sectors, reflecting short-term concerns tied to geopolitical and security uncertainties, including developments around Reko Diq and Balochistan.
However, he noted that strong domestic liquidity and unallocated institutional funds could support the market once conditions stabilise, with foreign investment likely to return over the longer term.
Overall trading volume was recorded at 709 million shares compared with the previous session’s tally of 874 million. The value of shares traded during the day was Rs38.9 billion.
Shares of 481 companies were traded. Of these, 194 stocks closed higher, 231 fell, and 56 remained unchanged.
K-Electric was the volume leader with trading in 131.1 million shares, gaining Rs0.33 to close at Rs8.55. It was followed by Pakistan International Bulk Terminal with 34.7 million shares, gaining Rs0.14 to close at Rs19.53, and WorldCall Telecom with 33.8 million shares, losing Rs0.02 to close at Rs1.63.
