KARACHI:
The Pakistan Stock Exchange (PSX) on Monday remained range bound and registered thin gains of 82 points as investors treaded cautiously ahead of monetary policy announcement later in the day.
As expected by many analysts in the wake of escalating geopolitical tensions, the central bank left its policy rate unchanged at 11%. Despite the conflict between Israel and Iran, the market ended trading in the positive territory as it took cue from the recovery in global equities.
In the morning, the PSX kicked off proceedings on an upbeat note and immediately reached its intra-day high at 122,903 points. Soon afterwards, investors resorted to profit-taking, pulling the KSE-100 index down to the intra-day low at 121,890 after midday.
“Stocks advanced despite geopolitical risks amid speculation about the State Bank of Pakistan’s (SBP) policy announcement later in the day,” said Ahsan Mehanti of Arif Habib Corp. “Trade remained high amid consolidation. Recovery in global equities, IMF-driven upbeat projections for privatisation, economic growth and development expenditure in the federal budget for FY26 played the role of catalysts in positive close at the PSX.”
At the end of trading, the benchmark KSE-100 index recorded a slight rise of 81.79 points, or 0.07%, and settled at 122,225.36. Topline Securities, in its review, remarked that Pakistan’s stock market experienced a pullback session, following recovery in global markets. The benchmark index traded within a range, hitting the intra-day high of 759 points and low of 253 points, before settling at 122,225 with a modest gain of 81 points.
Topline mentioned that positive contribution to the index came from Bank AL Habib, OGDC, NBP, Mari Petroleum and Meezan Bank, which collectively added 371 points. On the other hand, stock selling in Engro Holdings, Pakgen Power and Lucky Cement wiped off 255 points.
Market participation was robust as total traded volumes reached 1.22 billion shares and the traded value hit Rs26 billion, it added.
Arif Habib Limited Deputy Head of Trading Ali Najib called it “a consolidation day ahead of the MPS (Monetary Policy Statement).”
He said that the PSX had a range-bound session and ended on a relatively flat note at 122,225, up 82 points. The State Bank maintained its benchmark rate at 11%, as anticipated by the street.
During the day, the benchmark index floated between 121,890 and 122,903 levels, making them the intra-day low and high, respectively. Investors opted for a cautious approach amid heightening geopolitical tensions in the backdrop of Iran-Israel conflict, Najib said.
Among corporate news, the Fauji Fertiliser Company (FFC, -0.26%) board approved the submission of an Expression of Interest for PIA Holding Company (+7.95%) as the government planned to sell a 51-100% stake in PIA by the deadline of June 19.
“Market direction hinges on Middle East developments and 120,000 serves as a key support. With improved stability, the index could target 130,000 in the near term,” he anticipated. JS Research analyst Mubashir Anis Naviwala said that the bourse opened on a positive note, touching the intra-day high of 122,903, but failed to sustain the momentum. It closed at 122,225 as profit-taking emerged later in the session. On the economic front, the State Bank kept the policy rate unchanged at 11%, aligning with expectations. Trading activity was dominated by small-cap stocks, reflecting short-term speculative interest, he said.
“We advise investors to maintain a cautious stance and avoid aggressive exposure for now. Risk management remains the key amid geopolitical uncertainty and macro developments,” Naviwala added.
Overall trading volumes stood at 1.22 billion shares compared with Friday’s tally of 968.3 million. The value of shares traded was Rs25.7 billion. Shares of 471 companies were traded, of which 282 stocks closed higher, 159 dropped and 30 remained unchanged.
Among volume leaders, WorldCall Telecom saw trading in 267.1 million shares, gaining 17 paisa to Rs1.62 per share. It was followed by Pervez Ahmed Consultancy with trading in 92.03 million shares, gaining one rupee to Rs3.93 and First Capital Securities with 86.02 million shares, higher by 79 paisa to Rs3.85. Foreign investors bought shares worth Rs243.5 million, the National Clearing Company reported.
