Equities turn flat after early rally

KARACHI: Following a mid-week holiday for Eid Miladun Nabi, the Pakistan Stock Exchange (PSX) experienced a cautious trading session on Thursday. Initially opening higher, the benchmark KSE 100 index faced selling pressure toward the end of the trading day and closed flat, amid ongoing geopolitical and political uncertainties. Topline Securities Ltd reported the index hitting an intraday peak of 1,279 points at 178,650.02, driven by falling oil prices and renewed optimism about a possible peace agreement between the US and Iran.

Nevertheless, the initial enthusiasm faded as investors booked profits following the release of corporate earnings, eroding the index's gains. The index plummeted to an intraday trough of 174 points at 177,196.29 before settling at 177,322, a decline of 47 points, or 0.03 percent. Key contributors to the index's rise included Hub Power, Engro Holdings, Pakistan Oilfields, United Bank, and Fauji Fertiliser, collectively adding roughly 493 points.

Conversely, National Bank, Pakistan Petroleum, and Pakistan State Oil served as major drag factors, erasing about 470 points from the benchmark. Profit-taking wiped out the 1,279-point intraday gain. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, stated that the PSX witnessed a period of consolidation, with some traders opting for profit-taking as the session progressed, leaving the market with a slightly negative closing figure.

Corporate earnings reports played a significant role in the market's direction. Attock Petroleum disclosed FY26 earnings of Rs17.0bn, up 63% year-on-year, with earnings per share at Rs136.31, and announced a final dividend of Rs40 per share, increasing the FY26 payout to 44% from 30.5% in the same period last year. Pakistan Oilfield reported a Q4FY26 profit after tax of Rs12.4bn (EPS: Rs43.69), a 67% year-on-year increase, and a record annual dividend of Rs100 per share.

Hub Power reported a Q4FY26 PAT of Rs16.5bn (EPS: Rs12.77), a 39% year-on-year and 53% quarter-on-quarter rise, and announced a quarterly dividend of Rs5 per share. However, investor participation waned, with trading volume reaching 611.6 million shares and total turnover of Rs34.5bn. Analysts forecast that short-term trading would remain range-bound and volatile, with 175,000 acting as the initial key support level.