Value hunters help PSX close in green

KARACHI: On Tuesday, the Pakistan Stock Exchange (PSX) managed a modest gain, closing at 171,402.08 points, an increase of 248.92 points or 0.15 percent from the previous day. The index reached a peak of 171,680.74 points and a low of 170,866.94 points intraday. Despite this green candle, market sentiment remained unstable due to geopolitical and economic unpredictability.

The primary contributors to the gain were Mari Energies, Pakistan Petroleum, Hub Power, Fauji Cement Company Ltd, and Lucky Cement, collectively adding 233 points. Bank Al-Habib, Fauji Fertiliser, and MCB Bank were the main contributors to the index's decline, shaving off around 172 points. Analyst Ali Najib noted that market sentiment started weakly but recovered as value investors supported the index.

This recovery was bolstered by Saudi Arabia's efforts to resume oil pipeline flows and diplomatic negotiations to reopen the Strait of Hormuz, with Iran reportedly willing to reopen the strait within a week if the US eased military pressure. Meanwhile, corporate earnings also played a role. Sitara Petroleum Service Ltd reported a 69 percent increase in FY26 earnings to Rs4,976 million, while 4QFY26 earnings fell by 10 percent YoY due to inventory losses and reduced GO supplies.

Despite this, dealer margins remained stable at Rs8.64 per litre, and the company announced a final dividend of Re1 per share. The overall market participation weakened as trading volume dropped 7.36 percent to 641.8 million shares, and the traded value decreased by 8.13 percent to Rs18.4 billion.