Stocks slip as policy rate left unchanged

Index sheds 1,140 points amid selling pressure in rollover week

KARACHI:

The Pakistan Stock Exchange (PSX) opened the week under pressure on Monday as sentiment remained fragile ahead of monetary policy announcement, which prompted caution and selective profit-taking.

The benchmark KSE-100 index closed at 162,163.81, down 1,140.32 points, or 0.70%. It traded within a wide range, touching intra-day high of 163,571 and low of 161,767. In the afternoon, the State Bank announced that it had kept the policy rate unchanged at 11%.

Energy and manufacturing sectors bore the brunt of selling pressure, mainly contributing to the market's decline.

In its market wrap, KTrade Securities stated that the PSX began the rollover week under selling pressure as the absence of positive triggers weighed on investor sentiment. The KSE-100 index fell 1,140 points to close at 162,164.

The market's downward trajectory was largely driven by heavyweights including Pakistan State Oil, Lucky Cement, UBL, Mari Energies, Pakistan Petroleum, Habib Bank, Oil and Gas Development Company and Systems Limited, it said. In contrast, Air Link Communication, Askari Bank, The Searle Company and Interloop Limited provided some support.

Despite the overall decline, trading activity remained buoyant. Looking ahead, sentiment is expected to remain cautious as investors navigate the rollover week. However, the ongoing corporate earnings season could inject fresh momentum, KTrade said. Arif Habib Limited (AHL) noted that it was the fourth consecutive decline for the KSE-100 index. The central bank held its policy rate steady at 11% for a fourth consecutive meeting, signalling caution as recent floods damaged crops and drove up food prices.

Among corporate results, Fauji Cement (-3.13%) reported 1QFY26 earnings per share (EPS) of Rs1.34, up 1% year-on-year (YoY). Gross margins dipped to 31.5% from 34.3% in 1QFY25 and 39.1% in 4QFY25, mainly due to lower retention prices, which offset the positive impact of higher domestic dispatches.

Millat Tractors (-2.21%) reported 1QFY26 EPS of Rs2.57, down 17% YoY. Its net revenue stood at Rs7,546 million, compared to Rs7,996 million in the same period of last year, primarily due to lower volumetric sales, which fell 15% YoY to 2,177 units, reflecting weak farm economics, further exacerbated by recent floods, AHL said.

The overall trading volume slightly decreased to 1.01 billion shares compared with 1.04 billion in the previous session. The traded value stood at Rs34.8 billion.

Shares of 479 companies were traded. Of these, 157 closed higher, 277 fell and 45 remained unchanged.

WorldCall Telecom was the volume leader with trading in 164.3 million shares, falling Rs0.07 to close at Rs1.89. It was followed by K-Electric, with 123.4 million shares, gaining Rs0.19 to close at Rs5.81 and The Bank of Punjab, with 61.8 million shares, rising Rs0.24 to close at Rs37.24. According to the National Clearing Company, foreign investors bought shares worth Rs99.4 million.