PSX Opens Rollover Week on a Bearish Note
The Pakistan Stock Exchange (PSX) kicked off the rollover week on Monday with heightened volatility, as profit-taking and institutional selling weighed heavily on sentiment. The benchmark KSE-100 index fell by 677.75 points, or 0.45%, to close at 148,815.31.
The index had briefly rallied to an intra-day high of 586 points, before sliding to a low of 735 points, reflecting cautious investor behavior amid macroeconomic uncertainty.
Analysts Cite IMF Concerns, Foreign Outflows
Market experts pointed to a combination of factors driving the decline. Ahsan Mehanti of Arif Habib Corp noted that institutional profit-taking in an overbought market, flat government bond yields, foreign outflows, and worries about Pakistan’s external debt added to the negative momentum.
He highlighted that uncertainty over the International Monetary Fund’s (IMF) next review for the release of the third tranche under the Extended Fund Facility (EFF) further dampened investor sentiment.
Sector and Stock-Wise Performance
According to Topline Securities, the market saw a volatile session with heavy selling in banking and cement stocks.
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Gainers (supporting the index):
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Bank Alfalah (+1.68%)
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National Bank of Pakistan (+0.76%)
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The Searle Company (+1.81%)
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Pakistan Aluminium Beverage Cans
Together, these stocks contributed +92 points to the index.
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Losers (dragging the index):
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Bank AL Habib (-2.02%)
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Systems Limited (-2.02%)
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Meezan Bank (-1.43%)
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Habib Bank Ltd (HBL)
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Lucky Cement
Collectively, they pulled the index down by 394 points.
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Traded Value Leaders:
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NBP (Rs2.15 billion)
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The Searle Company (Rs2.06 billion)
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Pakistan State Oil (Rs1.26 billion)
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OGDCL (Rs665.43 million)
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Meezan Bank (Rs592.27 million)
Broader Market Activity
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Volume leader: Kohinoor Spinning Mills with 113.9m shares (+Rs0.59 to Rs7.07)
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Secure Logistics followed with 32.6m shares (+Rs0.63 to Rs18.42)
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Sui Southern Gas Co with 27.1m shares (+Rs1.71 to Rs42.27)
Overall, 693.3 million shares were traded (down from 802m on Friday), with a traded value of Rs26.3 billion compared to Rs40.5b in the previous session.
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Out of 479 companies, 204 advanced, 246 declined, and 29 remained unchanged.
The National Clearing Company reported foreign investors sold shares worth Rs378 million.
Market Outlook
JS Global’s Muhammad Hasan Ather noted that after an exceptional rally — where the KSE-100 surged from 40,000 in mid-2023 to an all-time high of 151,261 intra-day — investors are now booking profits.
He added that with the index trading at a price-to-earnings ratio (P/E) of 8.4x, close to its historical average, further upside may be limited unless new economic triggers or IMF clarity emerge.
Meanwhile, Arif Habib Limited highlighted fresh developments, including investor access to the PIA privatisation data room with rebidding expected in October, and renewed Pakistan-Bangladesh commitments to boost trade and investment.
Conclusion
The PSX began rollover week on a weak note, dragged down by profit-taking, IMF review uncertainty, and foreign outflows. While analysts expect near-term volatility, the market’s longer-term direction will hinge on macroeconomic stability, IMF engagement, and fresh economic reforms.
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