PSX falls 826 points on profit-taking

Weakness in heavyweight stocks, choppy trading drive market down

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KARACHI:

The Pakistan Stock Exchange (PSX) closed lower by 826 points, or 0.62%, on Wednesday as investors booked profits following a choppy trading session.

Analysts noted that concerns over US import tariffs and weak global triggers put pressure on the market, alongside rupee depreciation and the Asian Development Bank's (ADB) reservations about tax compliance.

The market saw intra-day high of 133,566 points, before sliding to the low of 132,326 and settling at 132,577. Weakness in heavyweight stocks brought the KSE-100 index down by 397 points, although trading activity remained robust with 906 million shares changing hands.

Ahsan Mehanti of Arif Habib Corp commented that stocks closed lower, under pressure due to institutional profit-taking in overbought shares amid foreign outflows and weak global equities, weighed down by concerns over US import tariffs.

Rupee instability and uncertainty about the outcome of ADB's concerns over revenue collection on a wider tax base drove bearish activity at the PSX, he added. At the end of trading, the KSE-100 index recorded a decrease of 826.20 points, or 0.62%, and settled at 132,576.99.

In its review, Topline Securities remarked that the market saw a phase of consolidation, fluctuating between intra-day high of 133,566 and low of 132,326 as investors opted for profit-taking.

The decline was mainly driven by negative contributions from Fauji Fertiliser Company, Engro Holdings, Bank AL Habib, Pakistan State Oil and HBL, which together pulled the index down by 397 points. TPL Properties led the volumes chart, with trading in 66 million shares, Topline added. Arif Habib Limited (AHL) reported that declines into the 132,000-133,000 support zone were witnessed on Wednesday. Some 36 shares rose, while 64 fell, with National Foods (+3.32%), Gadoon Textile Mills (+10%) and Meezan Bank (+0.24%) contributing the most to index gains.

On the flip side, Fauji Fertiliser Company (-1.04%), Engro Holdings (-1.36%) and Bank AL Habib (-1.67%) were the biggest downside contributors, it said.

AHL added that remittances from overseas Pakistanis rose 27% year-on-year to $38.2 billion in FY25, an all-time high. Remittances from Saudi Arabia, the United Arab Emirates and the UK topped the list. State Bank Governor Jameel Ahmad stated that Pakistan's economy was seeing the results of a tight monetary policy for inflation and the current account.

"The KSE-100 index is expected to find support within the 132,000-133,000 zone and resume its upside," it remarked. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index declined 0.6% at the day's end as investors' sentiment remained neutral amid renewed concerns over Pakistan's tax compliance highlighted by the ADB. Pressure was further amplified by rupee volatility and weakness across global equities, he said.

The market will remain cautious in the near term, with macroeconomic headwinds and policy ambiguity weighing on the outlook. However, clarity on fiscal reforms and global stabilisation could offer a potential recovery path to the PSX in the medium term, Ather added.

Overall trading volumes decreased to 905.7 million shares compared with Tuesday's tally of 1.2 billion. The value of shares traded was Rs30.5 billion. Shares of 478 companies were traded. Of these, 200 stocks closed higher, 254 dropped and 24 remained unchanged.

TPL Properties was the volume leader with trading in 65.9 million shares, falling Rs0.04 to close at Rs10.68. It was followed by Kohinoor Spinning Mills with 62.4 million shares, gaining Rs0.31 to close at Rs6.65 and PIA Holding Company with 39.8 million shares, rising Rs2.07 to close at Rs23.23. Foreign investors bought shares worth Rs287.9 million, the National Clearing Company reported.