KARACHI: The Pakistan Stock Exchange (PSX) saw a cautious session on Thursday, with the KSE-100 index retreating slightly after recent record highs. Investor nerves were rattled by concerns over tough conditions tied to a new IMF programme, including enforcement of agriculture income tax and resistance to provincial energy subsidies.
Fears of aggressive fiscal measures in the upcoming FY26 budget also weighed on the market. Potential new taxes on banking and savings income, along with expected hikes in petroleum levies on petrol and diesel, added to bearish sentiment. A weakening rupee and a 10% year-on-year decline in May exports further dampened confidence.
The KSE-100 closed at 121,641 points, down 157.87 points (0.13%) from the previous day. The market remained range-bound throughout the day, reflecting investor caution ahead of the long Eid holidays.
Top traded stocks by value included Unity Foods (Rs1.67 billion), Engro Holdings (Rs1.24 billion), and K-Electric (Rs1.03 billion). Despite the dip, the week was overall positive with gains led by Engro Holdings (+3.24%), Pakgen Power (+10.0%), and Service Industries (+5.49%).
Prime Minister Shehbaz Sharif’s upcoming visit to Saudi Arabia for talks on bilateral and economic cooperation adds a geopolitical dimension to market watch. Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) projects steady capital expenditures of around Rs30 billion annually.
Analysts view the 120,000-point level as a key post-Eid support, with upside potential if macroeconomic stability persists. Trading volume remained robust at 854 million shares, led by K-Electric, Unity Foods, and WorldCall Telecom. However, some profit-taking was noted in banking, cement, and oil and gas sectors as investors await the federal budget announcement on June 10, 2025.
Foreign investors were net sellers, offloading shares worth Rs271.6 million, signaling cautious sentiment amid the ongoing economic uncertainties.