The Pakistan Stock Exchange (PSX) kicked off the new trading week on Monday with a volatile performance as the benchmark KSE-100 index ended the day in the red.

Following late-session selling pressure owing to profit-taking and futures contract rollover, the benchmark KSE-100 index closed down by 482.71 points, or 0.31%, at 157,554.66.

The bourse opened the day on a positive note, climbing to the intra-day high of 158,850.34 points around midday as optimistic investors bought attractive stocks. However, the momentum faded as the session progressed, with investors opting to book profits, particularly in key sectors such as banking, cement and technology, pulling the index down to the low of 157,245.73.

Analysts attributed the downturn to a mix of caution ahead of key economic data and concerns over global market trends. Market participants awaited policy signals and corporate earnings announcements that could set direction for the coming sessions.

KTrade Securities, in its market wrap, wrote that the PSX experienced a volatile session, primarily driven by futures rollover pressure and profit-taking. The KSE-100 index dipped 483 points to close at 157,555.
Major laggards that contributed to the index’s decline were United Bank, Meezan Bank, Fauji Fertiliser and Lucky Cement. Despite the selling pressure, Pakistan State Oil, Hub Power, Oil and Gas Development Company and GlaxoSmithKline provided some support, it said.

Trading activity remained strong, where total volumes reached 1.67 billion shares. Though there was short-term consolidation pressure due to futures rollover, the PSX remained resilient, underpinned by investor confidence in the country’s long-term economic outlook and improving corporate earnings, KTrade added.

Arif Habib Limited (AHL) noted that the bourse started the new week with a loss of 0.31% in the KSE-100 index. Some 41 shares rose while 58 fell with Pakistan State Oil (+4.22%), Hub Power (+1.87%) and Oil and Gas Development Company (+1.22%) contributing the most to the index gains. In contrast, UBL (-2.5%), Engro Holdings (-1.68%) and Meezan Bank (-1.5%) were the biggest drags, it said.

In major news, Pakistan and Saudi Arabia initiated urgent efforts to elevate bilateral trade and economic cooperation to unprecedented levels. According to well-placed sources, a high-powered delegation comprising some of Saudi Arabia’s most prominent businessmen and industrialists was scheduled to visit Pakistan next month, AHL said.

In addition, the Federal Board of Revenue chairman ruled out the possibility of a mini-budget, stating that no proposal for additional taxes through a supplementary finance bill was under consideration.
AHL viewed it as an important week in terms of determining the future price action for the KSE-100 with the nearest support at 157k.

Overall trading volumes decreased to 1.67 billion shares compared to the previous session’s tally of 2.05 billion. The value of shares traded was Rs60.9 billion. K-Electric topped the volumes chart with trading in 236 million shares, rising Rs0.35 to close at Rs6.11.