PSX ends lower as KSE-100 sheds nearly 1,800 points

The Pakistan Stock Exchange (PSX) closed sharply lower on Monday, as sustained selling pressure dragged the benchmark index into the red.

During the trading session, the KSE-100 Index traded in a wide range, hitting an intra-day high of 185,650.59 points and a low of 180,992.79 points, indicating heightened volatility and weak investor sentiment.

At close, the KSE-100 Index settled at 182,340.38 points, a decrease of 1,789.20 points, or 0.97%.

Index performance was largely pressured by heavyweight decliners, with OGDC, MEBL, PPL, UBL, and LUCK collectively contributing a negative 932 points, brokerage house Topline Securities said in its post-market report.

These losses were partially offset by gains in select index heavyweights, including SAZEW, MCB, and NESTLE, which together added 221 points, it added.

Meanwhile, Pakistan and the United States are reportedly holding high-level bilateral talks this week on a range of international and bilateral issues, including trade and investment, well-informed sources told Business Recorder.

During the previous week, the PSX navigated high volatility marked by geopolitical uncertainty, rising domestic yields, external trade challenges and mixed sectoral performance, with the benchmark KSE-100 Index ultimately ending the week almost unchanged, reflecting a balance between emerging risks and pockets of resilience across select sectors. The KSE-100 Index closed at 184,129.58 points, down marginally by 44.90 points week-on-week from the previous close of 184,174.48 points.

Internationally, Asian markets jumped on Monday as a resounding win for Japanese Prime Minister Sanae Takaichi whetted appetites for more reflationary policies, while there was widespread investor relief at a last-gasp rebound in US chip stocks.

A rally in chip stocks and bargain hunting in beaten-down momentum plays, including silver, had helped shore up sentiment, as did wagers of more rate cuts from the U.S. Federal Reserve.

A rate cut by June is now seen as an odds-on bet, with a slew of economic data this week on jobs, inflation and spending expected to reinforce the case for stimulus.

Japan’s Nikkei led the gains with a rise of 4.4% to all-time highs as the government’s decisive majority clears the way for more spending and tax cuts.

The prospect of more borrowing, however, pushed two-year yields up to their highest since 1996 at 1.3%.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.2%, while South Korea’s tech-heavy index climbed 4.3%.

Volume on the all-share index decreased to 931.36 million from 1,272.64 million recorded in the previous close. The value of shares declined to Rs58.87 billion from Rs60.36 billion in the previous session.

K.Electric was the volume leader with 302.44 million shares, followed by B.O Punjab with 52.95 million shares, and Agha Steel with 46.98 million shares.

Shares of 481 companies were traded on Monday, of which 161 registered an increase, 278 recorded a fall, and 42 remained unchanged.