Negative sentiment was observed at the Pakistan Stock Exchange (PSX) on Monday, with its benchmark KSE-100 Index closing the day with a loss of nearly 900 points.
Selling pressure persisted throughout the trading session, dragging the KSE-100 Index to an intra-day low of 118,150.27.
At close, the benchmark index settled at 118,221.12, a decrease of 881.55 points or 0.74%.
“The local bourse witnessed a profit-taking session on Monday as uncertainty continued to weigh on investor sentiment,” brokerage house Topline Securities said in its post-market report.
“The bearish trend was primarily driven by concerns over the delay in the federal budget announcement and the lack of clarity regarding the IMF conditions tied to it.
“In the absence of positive triggers, investors chose to trim their positions and adopt a cautious stance,” it said.
KEL led the volume chart with 246.93 million shares traded, closing at its upper circuit, following news that K-Electric secured a dollar-linked tariff for its transmission and distribution business.
Energy stocks came under pressure amid rumours of a potential delay in the clearance of circular debt, with PPL, OGDC, and PSO emerging as major losers. On the downside, key index heavyweights including ENGROH, SYS, PSO, FFC, and OGDC collectively contributed to a 452-point decline in the benchmark index, Topline said.
During the previous week, the PSX remained under persistent pressure as investors adopted a cautious stance ahead of the upcoming federal budget amid growing concerns about proposed tax measures, which led to a continued downward trend in the market. The KSE-100 Index plunged by 546.47 points, or 0.45% week-on-week (WoW), closing at 119,102.67 points down from 119,649.14 points in the previous week.
Internationally, stock markets across Asia edged higher on Monday, and the euro rallied after President Donald Trump abruptly extended by more than a month his threat to slap 50% tariffs on EU goods, marking another temporary reprieve as part of his erratic trade policy.
On Sunday, Trump agreed to extend his deadline for trade talks until July 9, from the June 1 deadline he set on Friday, after European Commission President Ursula von der Leyen said the bloc needed more time to “reach a good deal.”
Market sentiment had been steadying after a sharp selloff across most assets last month as Trump paused his growth-denting tariffs and investors were keen on fresh trade deals after a pact with UK and a temporary agreement with China.
However, Trump’s latest policy moves were a reminder to investors how quickly circumstances could change and analysts have been pointing out that investors are shifting their money out of the US to Europe and Asia as they price in a possible US recession and a consequent global slowdown.
Apple was also caught in the trade crossfire on Friday, after Trump threatened a 25% levy on all imported iPhones bought by US consumers.
On Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.12%, while Japan’s Nikkei was marginally higher.
Meanwhile, the Pakistani rupee registered slight decline against the US dollar, depreciating 0.03% in the inter-bank market on Monday. At close, the local currency settled at 282.06, a loss of Re0.09 against the greenback.
Volume on the all-share index increased to 635.53 million from 338.00 million recorded in the previous close.
The value of shares rose to Rs18.58 billion from Rs18.51 billion in the previous session.
K-Electric Ltd was the volume leader with 246.93 million shares, followed by WorldCall Telecom with 36.72 million shares, and Telecard Limited with 30.01 million shares.
Shares of 467 companies were traded on Monday, of which 188 registered an increase, 235 recorded a fall, while 44 remained unchanged.
