The Pakistan Stock Exchange (PSX) succumbed to profit-taking on Thursday, with the KSE-100 index dropping nearly 800 points.
The market faced challenges as investors weighed the looming uncertainty ahead of federal budget announcement. With the International Monetary Fund's (IMF) proposed tax measures targeting key sectors such as oil, fertiliser and automobile, there was an air of caution among traders.
These proposals, coupled with economic concerns, prompted investors to take a step back and reassess their positions. Additionally, rupee depreciation intensified the pressure. As a result, stock selling in the latter part overwhelmed early gains, pushing the market into negative territory.
Arif Habib Corp MD Ahsan Mehanti commented "stocks closed under pressure in the pre-budget session amid uncertainty about the outcome of IMF-driven tax measures proposed for oil, fertiliser and auto sectors in the FY26 budget."
Additionally, security fears, tensions with India and rupee instability were the major catalysts for bearish close of the market, he noted.
At the end of trading, the benchmark KSE-100 index registered a loss of 778.41 points, or 0.65%, and settled at 119,153.04.
Topline Securities stated that the stock market remained in a consolidation mode, with the index fluctuating within a limited range. It posted the intra-day high of 768 points and low of 869 points, facing resistance near the 120,000 mark before closing at 119,153, down 778 points.
The decline was largely attributed to falling global oil prices, which weighed heavily on oil-related stocks, Topline said.
Arif Habib Limited (AHL) observed that the market continued to face supply surplus above the 120k level. Some 30 shares rose while 68 fell with Systems Limited (+5.39%), TPL REIT Fund-I (+6.23%) and Air Link Communication (+2.68%) contributing the most to index gains.
On the other side, Engro Holdings (-3.01%), Lucky Cement (-3.1%) and Pakistan Petroleum (-2.83%) were the biggest drags.
Among corporate announcements, AHL mentioned, Honda Atlas Cars (+1.93%) announced MY25 earnings per share (EPS) of Rs18.97, up 16% year-on-year (YoY), and a dividend per share of Rs8, which beat expectations. Its 4QMY25 EPS stood at Rs11.78, reflecting a 23% YoY increase.
An IMF delegation, led by Director for the Middle East, North Africa and Central Asia Jihad Azour, met PM Shehbaz Sharif to discuss the ongoing IMF loan programme and economic reforms.
By the close of the week, the index is poised to end down 0.4% week-on-week, though a finish above 120k would signal the strength ahead, AHL added.
KTrade Securities stated in its market wrap that volatility persisted at the PSX amid pre-budget uncertainty, with the KSE-100 index falling 0.65%, or 778 points, to close at 119,153.
Trading activity remained muted despite improving macroeconomic indicators. Investors are expected to stay cautious ahead of the FY26 federal budget, it predicted.
JS Global analyst Mohammed Waqar Iqbal noted that the market opened on a positive note as the index hit the intra-day high at 120,699. However, the momentum faded, when investors opted for profit-taking at higher levels, dragging the index down to the intra-day low of 119,062 before closing at 119,153, down 778 points.
Overall trading volumes decreased to 589.8 million shares compared with Wednesday's tally of 667.7 million. The value of shares traded during the day was Rs30.8 billion. Shares of 466 companies were traded. Of these, 195 stocks closed higher, 229 fell and 42 remained unchanged.
K-Electric was the volume leader with trading in 42.8 million shares, losing Rs0.04 to close at Rs4.71. It was followed by Bank Makramah with 28.2 million shares, adding Rs0.34 to close at Rs3.77 and Ghani Global Holdings with 27.6 million shares, gaining Rs1.12 to close at Rs16.71. During the day, foreign investors bought shares worth Rs249.5 million, the National Clearing Company reported.
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