KARACHI: The Pakistan Stock Exchange (PSX) started the week with a volatile session. The benchmark KSE-100 index closed slightly lower by 42 points, as investors remained cautious ahead of the decision about the key policy rate. In its meeting on Monday, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 12 per cent.
The KSE-100 decreased by 42.36 points, or 0.04 per cent, to 114,356.34 points, down from the 114,398.7 points recorded in the last session. The highest index of the day remained at 115,048.42 points, while the lowest level was recorded at 114,152.31 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said that “stocks closed flat amid uncertainty over the SBP policy and the outcome of Pakistan-IMF talks” following reports that IMF opposes the government’s move to borrow from commercial banks to resolve circular debt.
He said that foreign outflows, weak rupee and an expected surge in CPI inflation played a catalyst role in the bearish close. The KSE-30 index decreased by 110.82 points or 0.31 per cent to 35,347.19 points against 35,458.01 points.
Traded shares dropped by 80 million shares to 324.654 million shares against 404.365 million shares. The trading value dropped to Rs20.704 billion from Rs27.842 billion. Market capital lowered to Rs14.085 trillion against Rs14.125 trillion. Of the 435 companies active in the session, 194 closed in green, 170 in red and 71 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said the local stock market experienced a volatile session, with the benchmark index fluctuating between a peak of 650 points and a low of 246 points. It ultimately closed at 114,356 points, reflecting a modest decline of 42 points (-0.04 per cent). “The market’s performance was largely influenced by the prevailing uncertainty surrounding the monetary policy and circular debt concerns,” he said.
The positive movement was primarily fuelled by ENGROH, UBL, HBL, POL, and SRVI, which together contributed 504 points to the index. Conversely, PPL, OGDC, and PSO weighed on the market, pulling the index down by 317 points.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs378.76 to Rs23,698.91 per share, followed by PIA Holding Company Limited B, which increased by Rs68.25 to Rs891.43 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs92.96 to Rs9,133.99 per share; Nestle Pakistan Limited followed it, which closed lower by Rs74.35 to Rs7,321.25 per share.
Brokerage Arif Habib Ltd said that the PSX started the week on a flat note, as investors remained cautious ahead of the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) meeting. The benchmark KSE-100 index briefly touched the 115,000 mark before closing slightly lower.
Market analysts suggest that maintaining levels above 115,000 could set the stage for further gains, with 116,000 emerging as the next key target for the index in the coming sessions. Power Cement remained the volume leader with 24.823 million shares, which closed higher by 60 paisas to Rs11.76 per share. Fauji Cement, with 22.194 million shares, followed it, which closed lower by Rs2.08 to Rs43.91 per share.
Other significant turnover stocks included Maple Leaf, BO Punjab, Sui South Gas, K-Electric Ltd, WorldCall Telecom, At-Tahur Ltd, DGK Cement and Dewan Cement. In the futures market, 339 companies recorded trading, 171 of which increased, 157 decreased and 11 remained unchanged.
