KARACHI: The Pakistan Stock Exchange (PSX) slipped into negative territory on Monday as investors adopted a cautious stance ahead of the crucial IMF review later this month. The benchmark KSE-100 index shed 482 points (0.31%), closing at 157,554, after a volatile session marked by sharp swings in both directions.
The market initially climbed more than 800 points, buoyed by selective buying in key sectors. However, the momentum quickly faded as profit-taking set in and concerns over tighter economic conditions weighed on sentiment. A further dampener came in the form of a surge in the Margin Trading System (MTS) rate, which jumped to 17.10, tightening leverage opportunities for traders.
Energy and pharmaceutical counters provided some support, with Pakistan State Oil (PSO), Hub Power, Oil & Gas Development Company, and GlaxoSmithKline contributing over 400 positive points. Yet, these gains were eclipsed by heavy losses in major stocks such as United Bank Limited (UBL), Engro Holdings, Meezan Bank, Fauji Fertiliser, and Lucky Cement, which collectively dragged the index down by nearly 660 points.
Trading activity also showed signs of cooling. Volumes fell by 18.64% to 1.66 billion shares, while overall traded value dropped by 12.08% to Rs 60.8 billion. K-Electric remained the most active scrip, recording over 236 million shares traded during the session.
Analysts believe the market will remain choppy through the ongoing futures rollover week, with sentiment closely tied to the IMF’s assessment of Pakistan’s economic health. Until clarity emerges, investors are likely to tread carefully, keeping volatility at the forefront of trading patterns.
This story has been reported by PakTribune. All rights reserved.