Momentum fizzles at range-bound PSX

KSE-100 index slips 119 points as investors remain cautious

KARACHI:

The Pakistan Stock Exchange (PSX) experienced choppy trading on Monday as the benchmark KSE-100 index struggled to protect early gains and ultimately closed slightly in the red.

After a firm start, profit-taking pulled the market down and the index slipped to the intra-day low of 161,241 before midday. It then recouped losses, touching the intra-day high of 162,385 just before close. The KSE-100 fell again and ended the day with a thin loss of 119 points, or 0.07%, at 161,984.

Market participants noted a lack of clear catalysts, with investors opting for caution ahead of macroeconomic updates. As a result, trading remained range bound.

KTrade Securities mentioned in its report that PSX opened the rollover week with low volumes, range-bound trading and muted participation across the board. Selling pressure was largely driven by the oil & gas sector, where Mari Energies, OGDC, Pakistan Oilfields and Pakistan Petroleum weighed on the index. In contrast, the fertiliser sector posted gains, led by Fauji Fertiliser and Engro Corporation.

KTrade predicted that market sentiment may continue to hinge on political developments, rollover-related flows and key economic triggers including the upcoming IMF tranche. Topline Securities observed that the local bourse remained largely range bound throughout the session as investors maintained a cautious posture amid the expiry of November futures contracts. Sentiment was further dampened by concerns surrounding the law and order situation, which exerted pressure during the initial hours of trade.

Nevertheless, selective buying in the latter half helped stabilise the benchmark index at 161,984, after reaching the intra-day high of 162,385 and low of 161,241, it said. Arif Habib Limited (AHL) observed that the KSE-100 started the week with a flat session that showed the index trading either side of 162k. Fauji Fertiliser (+1.47%), Engro Corporation (+1.62%) and Pioneer Cement (+5.45%) contributed the most to index gains. On the other side, Mari Energies (-1.5%), OGDC (-1.28%) and Meezan Bank (-1.06%) were the biggest index drags, it said.

In the energy sector, AHL mentioned, Pakistan Petroleum (-1.16%) announced that it would drill its first offshore oil well in March 2026 along Sindh's southern coastline in the Sirani block near Sujawal.

Overall trading volumes decreased to 490.3 million shares compared to previous tally of 768 million. The value of traded shares stood at Rs23.7 billion.

PSX regulation overhaul

The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to PSX regulations aimed at promoting greater market transparency, strengthening investor protection and developing a robust Shariah-compliant capital market ecosystem, adds APP. The approved changes require PSX to publicly disclose all disciplinary actions taken against listed companies on its website. This will enable investors to make better-informed decisions and enhance overall disclosure to market participants, said a press release.

Furthermore, listed companies must now provide Shariah-related disclosures on income, loans and investments directly to PSX. This will give the exchange access to information, allowing for accurate and timely Shariah screening for inclusion in the KMI All-Share Index.