The Pakistan Stock Exchange (PSX) saw heightened volatility on Monday as the benchmark KSE-100 Index, despite a strong bullish start and an intraday gain of over 900 points, closed in the red, shedding 813.29 points or 0.68% to settle at 118,877.80.
Early in the session, the index crossed the 120,000-point milestone, reaching as high as 120,590.77 by midday, reflecting broad-based buying across key sectors. By 1:35pm, the index was still holding firm at 120,326.81, up 635.72 points or 0.53%, with momentum driven by investor optimism in cement, banking, oil and gas, refineries, and fertilizers. Major index movers during the rally included PRL, HUBCO, PSO, SNGPL, MARI, OGDC, POL and PPL — all trading firmly in the green during the first half.
However, late-session profit-taking wiped out earlier gains, pulling the market into negative territory. The index eventually closed near its intraday low of 118,672.84, with total trading volume for the benchmark standing at 164.32 million shares. Out of the 100 index constituents, 72 ended lower, 26 posted gains, and 2 remained unchanged.
Systems Limited (SYS) was the biggest drag on the index, falling 4.98% and slashing 172.17 points. Other major negative contributors included Engro Corporation (-103.09 points), Pakistan Petroleum (-66.21), Fauji Fertilizer Company (-57.10), and Lucky Cement (-56.58).
In contrast, Pakgen Power (PKGP) hit its upper circuit with a 10% gain, adding 70.42 points to the index. National Foods (NATF), Engro Polymer (EPCL), PGLC, and Ghani Global Glass (GHGL) were also among the top gainers, collectively adding modest upward pressure.
Sectoral analysis showed that Technology & Communication (-197.75 points), Cement (-189.30), Oil & Gas Exploration (-133.52), Fertilizer (-112.74), and Investment-related stocks (-106.47) led the market decline. These losses overshadowed gains seen in Food & Personal Care Products (+35.91), Power (+35.27), Glass & Ceramics (+27.85), Commercial Banks (+18.18), and Chemicals (+10.14).
The early optimism was partly driven by expectations that the upcoming federal budget may offer clarity on taxes and economic direction, following a week where the market posted a mild recovery. Last week, the KSE-100 had gained 588 points (0.49%) to close at 119,691, amid improving macroeconomic signals and a perception of policy stability. Yet, lingering concerns about fiscal tightening and revenue measures in the upcoming budget announcement continue to weigh on investor sentiment.
Analysts believe the index will remain sensitive to developments related to the federal budget, which could trigger further bouts of volatility in the days ahead.
