PSX sheds nearly 400 points on profit-taking

Volatility was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index swaying in both directions before closing with a loss of nearly 400 points on Monday.

At close, the KSE-100 Index settled at 138,217.58 level, a decrease of 379.78 points or 0.27%.

“The market remained range-bound throughout the session, fluctuating between an intra-day high of 139,201 and a low of 138,150, as investors engaged in profit-taking ahead of end-July contract expires,” brokerage house Topline Securities said in its post-market report.

Pressure on the index came from FFC, UBL, OGDC, SYS, and HUBC, which collectively dragged it down by 438 points. On the other hand, HBL, EFERT, and PABC provided some support, contributing a combined 152 points, it added.

During the previous week, the PSX closed on a historic high, buoyed by a blend of investor optimism, strong macroeconomic data, and anticipation of robust corporate earnings. The KSE-100 Index surged to an all-time closing level of 138,597 points, marking a weekly gain of 3.2%, or 4,297 points—the highest ever in its trading history.

Analysts noted that the sentiment on the trading floor was distinctly optimistic, despite foreign institutional selling and the usual summer lull in investor activity.

Internationally, Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech giants.

Investors were also hoping for some progress in trade talks ahead of President Donald Trump’s August 1 tariff deadline, with US Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union.

There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest.

In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba’s grip on power as a tariff deadline looms.

Ishiba expressed his intention to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar.

Meanwhile, the Pakistani rupee declined slightly against the US dollar, depreciating 0.03% in the inter-bank market on Monday. At close, the currency settled at 284.95, a loss of Re0.08.

Volume on the all-share index decreased to 608.19 million from 609.44 million recorded in the previous close.

The value of shares declined to Rs23.52 billion from Rs31.62 billion in the previous session.

Prud Mod.1st was the volume leader with 58.74 million shares, followed by K-Electric Ltd with 53.17 million shares, and Pak Int.Bulk with 51.73 million shares.

Shares of 479 companies were traded on Monday, of which 193 registered an increase, 245 recorded a fall, while 41 remained unchanged.