Friday's trading session at the Pakistan Stock Exchange (PSX) brought a halt to a two-day recovery, as the benchmark KSE-100 index succumbed to profit-taking and closed in the red. The index settled at 181,430.02 points, declining 346.57 points or 0.19%, after investors squared off positions ahead of the weekend, according to Topline Securities Ltd. Main Developments The index opened on a subdued note, touching an intraday high of 181,647 before early gains were erased in the second half of the session. Buying interest emerged in the final hours, helping the market recover some losses, but the close remained marginally negative. Profit-booking was primarily triggered by a rebound in international oil prices, which prompted investors to lock in gains. The largest drags on the index were Engro Holdings, United Bank, MCB Bank, Engro Fertiliser, and Fatima Fertiliser, collectively shaving 331 points off the benchmark. Read also: Why Pakistan's GDP misses what households actually feel Trading activity weakened notably, with volume dipping 9.74% to 716 million shares and traded value falling 15.40% to Rs34.1 billion. Cnergyico PK led the volume chart with 161 million shares traded. Background Friday's decline snapped a two-session rally that had lifted the market, as investors had been riding on positive momentum. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market opened on a subdued note, with early gains quickly fading as participants squared off positions ahead of the weekend. In a separate development, Mari Energies reported record FY26 earnings of Rs87 billion, with 4QFY26 earnings per share (EPS) of Rs31.2, up 99% year-on-year. The strong performance was driven by higher oil prices, increased production from the HRL field, the commencement of output from Spinwam, and a tax reversal. Why It Matters The market's inability to sustain its recovery signals ongoing caution among investors, who are balancing profit-taking at higher levels with the anticipation of new catalysts. The dip in trading volume and value reflects a wait-and-see approach, with participants holding back until clearer macroeconomic signals emerge. Oil price fluctuations remain a key driver, as they directly impact corporate earnings and investor sentiment. The recent easing of geopolitical tensions and stable oil prices could provide support, but the market's range-bound behaviour suggests uncertainty persists. What's Next Analysts expect the market to remain range-bound in the near term, with investors awaiting new macroeconomic and corporate catalysts. The ongoing earnings season, coupled with stable oil prices and easing geopolitical tensions, is likely to support the market, but profit-taking at higher levels could keep the benchmark volatile.