KARACHI: The Pakistan Stock Exchange (PSX) started June on a weak note as the KMI-30 index declined significantly during Monday’s trading session, reflecting cautious investor sentiment and broad-based selling in major heavyweight stocks.
According to official market data released by the PSX, the KMI-30 index closed at 243,947.97 points, down 6,548.51 points or 2.61 percent from the previous session.
The benchmark Islamic index opened at 250,605.18 points and touched an intraday high of 250,788.86 points before coming under sustained selling pressure. The market eventually fell to a low of 243,677.62 points before it managed to move slightly above that level at the close.
Market participants attributed the decline to profit-taking activity in key sectors, especially energy, exploration and production, and large industrial stocks. The session witnessed considerable movement in the key components of the index, resulting in increased volatility throughout the day.
Despite the overall bearishness, several companies provided positive support to the benchmark index. Honda Atlas Cars (HCAR) emerged as the top contributor to the index, adding 69.21 points. Other notable gainers included Airlink Communication, Fauji Foods Limited (FFL), Pakistan Refinery Limited (PRL) and Ghani Chemical Industries (GHNI).
However, gains in these counters were outweighed by heavy losses in several blue-chip stocks. Engro Holdings was the biggest drag on the index, shedding 1,229.68 points. Other major decliners included Lucky Cement, Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Hub Power Company (HUBC).
Trading activity remained healthy, with the index volume reaching 106.21 million shares, indicating continued investor participation despite the market correction.
The year-to-date performance of the KMI-30 index remains positive at 31.94%, suggesting that the broader market has maintained the significant gains accumulated during the current year. However, the calendar year-to-date return was negative 1.85%, highlighting the challenges faced by investors in recent months amid the volatility of economic and corporate growth.
Analysts noted that market movements continue to be influenced by corporate earnings expectations, monetary policy outlook, foreign exchange trends and developments in the energy sector. Investors are also keeping a close eye on macroeconomic indicators and policy decisions that could affect future market direction.
Financial experts stressed that short-term volatility is a natural feature of equity markets and should be viewed in the context of long-term investment trends. They advised investors to focus on company fundamentals and sectoral performance rather than reacting solely to daily market fluctuations.
As trading enters the first week of June, market participants are expected to watch for upcoming economic indicators, corporate announcements and policy developments that could affect investor confidence and market performance in the coming weeks.