Pakistan stocks ended on a muted note on Monday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) falling by 74 points, closing at 40,076 points.
The index dropped from last Friday’s closing of 40,150 points, reflecting a modest decline of 0.19% on a day characterized by subdued trading activity.
Analysts at Arif Habib Limited noted that the Pakistan stocks remained range-bound throughout the trading session, with limited investor enthusiasm despite the Pakistani rupee recovering slightly against the US dollar. The rupee’s stabilization, which had been anticipated to inject some optimism into the market, failed to ignite significant buying interest as investors remained cautious amid broader economic concerns.
The KSE-100 index initially opened in the positive zone, but sideways trading prevailed as investors showed little appetite for large-scale buying. Volumes at Pakistan stocks remained notably dry in the main board, highlighting the lack of major trading activity. However, there was some action in third-tier stocks, where relatively decent volumes were recorded.
At the close of the session, the KSE-100 index settled at 40,075.96 points, reflecting a day-on-day decline of 74.4 points. Key sectors that dragged the market down included Fertilizers, which contributed a loss of 55.6 points, followed by Banks (-31.6 points), Insurance (-22.0 points), Exploration and Production (E&P) (-10.5 points), and Power (-7.8 points). These sectors collectively weighed heavily on the performance of Pakistan stocks, as investors remained cautious in the face of ongoing economic challenges and uncertainty surrounding macroeconomic policies.
Trading volumes witnessed a sharp decline, falling by 35.1% from 170.3 million shares on Friday to 110.4 million shares on Monday. Similarly, the average traded value decreased significantly by 41.1%, reaching USD 15.6 million compared to USD 26.4 million in the previous session. This decline in trading activity reflected the market’s subdued sentiment and investor wariness.
Despite the overall market slump, certain stocks recorded significant volumes. TPL Properties (TPLP), TRG Pakistan, WorldCall Telecom (WTL), Agritech Limited (AGL), and TeleCard Limited (TELE) were among the most actively traded shares, contributing notably to the overall volumes.
As Pakistan’s stock market grapples with a range of economic challenges, including currency volatility, rising inflation, and interest rate uncertainties, investor sentiment is expected to remain cautious in the near term, barring any major positive developments.
