The Pakistan Stock Exchange (PSX) witnessed a bearish trading session on Monday as profit-taking in key fertilizer and banking stocks, despite support from select energy sector stocks, pushed the benchmark index into negative territory.
According to the latest market data released by the PSX, the benchmark KSE-100 index closed at 178,471.87 points, down 450.89 points or 0.25 percent from the previous session.
The market opened at 180,146.06 points, briefly touched an intraday high of 180,507.82 points, and later slipped to a low of 178,337.14 points before settling near the day’s lower limit.
Market participants described the session as one of caution, with investors opting to book profits after recent gains. The decline came despite relatively healthy trading activity, suggesting that investors remained active but selective in their stock selection.
The total volume of KSE-100 constituent stocks stood at 230.11 million shares, reflecting continued market participation in major sectors.
Analysts noted that sentiment remained mixed as investors reviewed developments related to macroeconomic stability, corporate earnings expectations and global commodity trends. The market’s failure to sustain early gains indicates the presence of selling pressure in heavyweight sectors.
Among the stocks contributing positively to the index’s performance, Oil and Gas Development Company (OGDC) emerged as the leading support, adding 66.99 points to the benchmark index. The company continued to attract investor interest amid expectations of solid earnings from the energy sector and favorable oil prices.
Millat Tractors Limited (MTL) also supported the market performance by contributing 54.94 points, while Sui Northern Gas Pipelines Limited (SNGP) added 53.40 points.
Other notable positive contributors included Colgate Palmolive Pakistan (COLG), which added 38.22 points, and Hub Power Company (HUBC) which added 23.13 points.
Market observers said the positive performance of these stocks reflected investors’ preference for companies offering earnings resilience and defensive features in an uncertain economic environment.
However, the gains in selected stocks were insufficient to offset the losses recorded in several heavyweight counters.
The biggest drag on the benchmark index came from Fauji Fertilizer Company (FFC) which shed 77.48 points on the index. The fertilizer giant faced selling pressure as investors adjusted positions after recent rallies.
Bank Alfalah Limited (BAHL) followed closely, shedding 77.23 points, while Habib Bank Limited (HBL) weighed on the market by 70.16 points.
Additional pressure came from Lucky Cement (LUCK), which contributed negative 60.24 points, and MCB Bank Limited (MCB), which shed 41.04 points to the index.
The combined impact of these heavyweight stocks weighed on the benchmark index significantly, ultimately leading to the day’s decline.
The broader market picture suggested that investors should focus on company-specific fundamentals rather than adopting a uniform sector-based approach. While energy and utility stocks continued to attract interest, profit-taking in the fertilizer, banking and cement sectors limited the overall market momentum.
Meanwhile, the KMI-30 index, which tracks Sharia-compliant stocks, also ended the session in negative territory. The index closed down 196.20 points, or 0.08 percent, at 254,996.96 points.
The KMI-30 opened at 256,965.05 points, hit an intraday high of 257,418.52 points, and touched a low of 254,519.48 points during the trading session.
The trading volume among KMI-30 constituents stood at 124.41 million shares, indicating continued activity in the Islamic equity segment.
The strongest positive contribution to the KMI-30 came from OGDC, which added 192.59 points, followed by SNGP at second place with 153.51 points. Other notable gainers included HUBC, Pakistan Petroleum Limited (PPL), and Sui Southern Gas Company (SSGC).
On the downside, Lucky Cement emerged as the biggest drag on the index, shedding 173.17 points. It was followed by FFC, Systems Limited (SYS), Pakistan State Oil (PSO), and Meezan Bank Limited (MEBL).
Financial analysts believe that the market direction in the coming sessions will largely depend on investors’ expectations regarding economic policy, corporate profits, and external account growth.
Recent improvement in macroeconomic indicators has helped maintain confidence in equities, but market participants continue to monitor inflation trends, interest rate expectations, and developments in international markets.
With the KSE-100 still maintaining a year-to-date gain of 42.06 percent and the KMI-30 posting an impressive return of 37.92 percent, analysts say the broader long-term trend remains constructive despite short-term volatility.
Investors are expected to remain selective, focusing on sectors with strong earnings exposure, profit prospects, and exposure to improving economy
