PSX Suffers Significant Loss as KSE-100 Drops 578 Points
The Pakistan Stock Exchange (PSX) experienced substantial selling pressure on Monday, resulting in the benchmark KSE-100 Index plummeting by 578 points. This marked a sharp downturn from the initial positive momentum at the start of the trading session.
The KSE-100 began the day on an optimistic note, reaching an intra-day high of 79,388.12 points. However, profit-taking soon ensued, reversing the earlier gains and driving the index into negative territory. By the end of the trading day, the benchmark index had settled at 78,232.10 points, reflecting a decrease of 578.40 points or 0.73%.
Key sectors faced significant selling pressure, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and pharmaceuticals. Major stocks such as Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Shell Pakistan Limited (SHEL), MCB Bank Limited (MCB), and Meezan Bank Limited (MEBL) ended the day in the red.
The PSX had displayed a bullish trend in the preceding two-day trading week, buoyed by the recent budget announcement that avoided any adverse taxation measures. However, Monday’s downturn indicates a possible shift in market sentiment.
According to a note from Intermarket Securities Limited, the market is expected to remain range-bound in the near term. The brokerage highlighted the importance of the upcoming budget approval in parliament, particularly now that the Pakistan Peoples Party (PPP) has seemingly resolved its concerns. This approval is anticipated to pave the way for renewed discussions with the International Monetary Fund (IMF) regarding a new financial program.
Intermarket Securities also noted that the initiation of a new military operation against militants in the country, named Azm-estehkam, is a positive development. Improved security conditions could enhance foreign direct investment (FDI) and positively influence market perception among international investors.
On the global stage, Asian shares slipped on Monday as investors awaited crucial US price data, which is expected to indicate a further moderation in inflation. Markets were also on high alert for potential Japanese intervention as the US dollar tested the 160 yen threshold. The MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by 0.9%, following a recent two-year high. South Korean stocks similarly declined by 0.8%.
In the currency market, the Pakistani rupee experienced a slight depreciation against the US dollar, losing 0.04% in the inter-bank market. By the end of the trading session, the rupee had settled at 278.62 against the dollar, marking a loss of Re0.11.
Trading volume on the all-share index saw a decrease, falling to 385.17 million shares from 471.34 million shares in the previous session. The total value of shares traded also declined, dropping to Rs15.45 billion from Rs20.47 billion.
Pervez Ahmed Co emerged as the volume leader with 46.84 million shares traded, followed by WorldCall Telecom with 20.76 million shares, and Hub Power Co with 20.11 million shares. Overall, 432 companies were traded on Monday, with 122 registering gains, 254 recording losses, and 56 remaining unchanged.
The market’s future direction remains uncertain, hinging largely on upcoming economic policies and geopolitical developments. The anticipation surrounding the US price data, the potential impact of the new military operation in Pakistan, and the forthcoming budget approval in parliament are all critical factors that could shape investor sentiment and market trends in the near term.
