KARACHI: The continued contraction in big industry output shattered investor confidence, causing the Pakistan Stock Exchange (PSX) to snap its northward journey on Wednesday despite an overnight rating upgrade by Fitch.

Ahsan Mehanti of Arif Habib Corporation said the PSX closed sharply lower in the earning season amid a 3.5pc year-on-year contraction in Large-Scale Manufacturing in February and investor fears over the outcome of the US-China trade tariff.

Rupee instability and dismal cement sales for March also dampened inv­e­stor sentiments, leading to a bearish close at PSX.

Topline Securities Ltd said the local bourse witnessed a hot and cold session, reflecting a mix of optimism and caution among investors. The market opened on a strong footing, gaining as much as 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage.

The index slipped to an intraday low of 999 points, eventually closing at 116,020.11, down by 755.39 points or 0.65pc day-on-day.

The volatility could be attributed to the ongoing trade tensions between the United States and China, which have reignited concerns over global economic stability and impacted investor sentiment.

United Bank Ltd emerged as the day’s star performer after announcing its 1Q2025 financial results. The bank reported its highest-ever quarterly earnings of Rs36bn, translating into an EPS of Rs28.9. In addition, the board declared a cash dividend of Rs11 per share.

UBL also announced a stock split in the ratio of 2 shares for every one share held — becoming the first bank in Pakistan to undertake such a corporate action.

Ali Najib, Head of Sales at Insight Securities, said despite a rating upgrade to ‘B-’ from ‘CCC+’, the PSX couldn’t withstand selling headwinds courtesy of the profit-taking opted by the investor community.

During the session, fertiliser, bank, exploration & production and technology stocks contributed negatively to the index as Mari Energies, Engro Holdings, Meezan Bank, Systems Ltd, and Pakistan Petroleum lost 367 points, cumulatively. Conversely, Engro Fertiliser, Lucky Cement MCB Bank, ICI and Cherat Cement HCC added 104 points collectively.

However, the trading volume increased by 0.48pc to 481.81 million shares while the traded value increased 26.55pc to Rs38.53bn day-on-day.

Published in Dawn, April 17th, 2025