The Pakistan Stock Exchange (PSX) commenced the week with lacklustre trading on Monday as the benchmark KSE-100 index lost momentum owing to profit-taking by investors ahead of expiry of July-end contracts.
After fluctuating within a narrow band throughout the day, the index recorded a decrease of 379.78 points, or 0.27%, and settled at 138,217.58 by the close of trading. Analysts attributed the bearish sentiment to uncertainty surrounding external debt repayments in FY26 and investor anxiety ahead of the State Bank's monetary policy decision. Geopolitical worries, inflationary pressures and currency depreciation further contributed to the market's decline.
Ahsan Mehanti of Arif Habib Corp remarked that stocks closed under pressure amid geopolitical uncertainty as well as concerns over the impact of inflation on the monetary policy announcement next week. He said that rupee instability and worries about external debt repayments due in FY26 drove bearish activity at the PSX.
In its review, Topline Securities commented that the market remained range bound throughout the session, fluctuating between intra-day high of 139,201 and intra-day low of 138,150, as investors engaged in profit-taking ahead of July-end contract expiry.
Pressure on the index came from Fauji Fertiliser Company (FFC), United Bank Limited (UBL), Oil and Gas Development Company (OGDC), Systems Limited and Hub Power, which dragged the market down by 438 points. On the other hand, HBL, Engro Fertilisers and Pakistan Aluminium Beverage Cans lent some support by contributing 152 points, Topline added.
According to Arif Habib Limited (AHL), the week commenced with the decline in KSE-100 into the support range of 137.2-138.2k. Some 42 shares rose while 56 fell, with HBL (+2.13%), Engro Fertilisers (+0.79%) and Pakistan Aluminium Beverage Cans (+5.47%) contributing the most to index gains. On the flip side, FFC (-1.48%), UBL (-1.06%) and OGDC (-0.94%) were the biggest drags, it said.
According to reports, Finance Minister Muhammad Aurangzeb held meetings with US officials to negotiate Washington's demands as part of trade talks ahead of the August 1 deadline. Both parties expressed optimism that the ongoing talks would yield positive outcomes, benefiting the economies of both countries.
AHL pointed out that in June 2025, power generation rose 2.1% year-on-year, reaching 13,744 gigawatt hours (GWh), compared to 13,459 GWh in June 2024. On a month-on-month basis, generation rose 8%.
JS Global analyst Muhammad Hasan Ather stated that the KSE-100 index experienced a volatile session and closed down 380 points.
After hitting a historic high last week, the market saw profit-taking amid investor caution. Despite a strong opening, intra-day selling erased early gains. The pullback follows a robust 3.2% weekly surge, driven by macroeconomic optimism and earnings expectations, he said.
Looking ahead, the market may consolidate near current levels, with sentiment hinging on corporate earnings, economic indicators and clarity on foreign investment flows, the analyst added.
Arif Habib Ltd Deputy Head of Trading Ali Najib remarked that the 135,000 level served as initial support for the KSE-100 index, backed by strong corporate earnings and consistent foreign inflows. "If this level is breached, the index may drift towards 132,000, where compelling valuations and expectations of monetary easing could help revive investor sentiment and reignite buying interest," he said.
Overall trading volumes decreased slightly to 608.2 million shares compared with Friday's tally of 609.4 million. Traded value stood at Rs23.5 billion. Shares of 479 companies were traded. Of these, 193 stocks closed higher, 245 fell and 41 remained unchanged.
First Prudential Modaraba was the volume leader with trading in 58.7 million shares, gaining Rs0.48 to close at Rs4.98. It was followed by K-Electric with trading in 53.2 million shares, gaining Rs0.12 to close at Rs5.43 and Pakistan International Bulk Terminal with 51.7 million shares, falling Rs0.08 to close at Rs10.06. Foreign investors sold shares worth Rs815.8 million, the National Clearing Company reported.
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