Pakistan Stock Exchange (PSX) on Monday closed lower as investor interest remained subdued amid concerns over foreign fund outflows, ongoing consolidation during the corporate earnings season and uncertainty surrounding tax reforms ahead of the International Monetary Fund (IMF) review under its Extended Fund Facility (EFF).
Analysts commented that factors such as rupee instability, falling foreign exchange reserves and geopolitical uncertainty played a significant role in the bearish close.
The KSE-100 index experienced a volatile session, reaching its intra-day high of 439 points before falling to the low of 571 points. It eventually settled at 111,744, recording a decline of 342 points.
According to Ahsan Mehanti of Arif Habib Corp, stocks closed lower amid consolidation in the earnings season as well as investor concerns over foreign outflows and the outcome of tax reforms ahead of the IMF review for the release of its next tranche under the EFF.
He added that rupee instability, falling foreign exchange reserves and geopolitical uncertainty played the role of catalysts in bearish close at the PSX.
At the end of trading, the benchmark KSE-100 index recorded a decrease of 341.76 points, or 0.30%, and settled at 111,743.53.
In its review, Topline Securities stated that the local bourse experienced a volatile session, oscillating between gains and losses. The index reached the intra-day high of 439 points before plunging to the low of 571 points. It ultimately closed at 111,744, down 342 points (0.30%).
Initial optimism faded as the lack of positive triggers dampened investor sentiment, triggering sell-off in the latter half. With no major catalysts to sustain momentum, the market drifted into negative territory by the close of trading, it said.
The upward movement was primarily driven by Lucky Cement, Bank AL Habib, The Bank of Punjab, UBL and Fatima Fertiliser, which collectively contributed 296 points to the index. Conversely, Mari Petroleum, Pakistan Petroleum, TRG Pakistan, The Searle Company and Oil and Gas Development Company dragged the index down by 301 points.
Topline added that The Bank of Punjab attracted investor interest after announcing 4QCY24 results. The bank reported earnings per share (EPS) of Rs1.67 for the quarter, bringing total EPS for CY24 to Rs4.09. Additionally, it declared a cash dividend of Rs1.80 per share.
Arif Habib Limited (AHL) commented that the KSE-100 index recorded the fourth consecutive negative close, which pushed its key area down to around 112,000 points.
AHL added that Engro Polymer (+2.48%) announced that its wholly owned subsidiary, Engro Peroxide, had commenced commercial operation at its hydrogen peroxide plant.
Overall trading volumes increased to 511.2 million shares compared with Friday's tally of 457.05 million. Shares of 435 companies were traded. Of these, 130 stocks closed higher, 235 fell and 70 remained unchanged.
The Bank of Punjab was the volume leader with trading in 184.4 million shares, rising Rs1.07 to close at Rs12.17. It was followed by Power Cement with 38.6 million shares, gaining Rs0.9 to close at Rs10.76 and WorldCall Telecom with 33.03 million shares, falling Rs0.05 to close at Rs1.47. During the day, foreign investors sold shares worth Rs392.5 million, the NCCPL reported.
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