PSX closes at a loss of more than 5000 points as selling pressure intensifies

Bears continued to dominate the trading floor of the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index declining over 5000 points at close, due to heavy selling hitting major sectors. 

According to the PSX website, the market started the week on a bearish note, and the benchmark index plunged to as low as 173,574.26, shedding over 6,029.47 points compared to the previous close.

Losses were widespread across major sectors, including oil and gas exploration companies, oil marketing companies, automobile assemblers, cement, commercial banks, power generation and refineries. Index-heavy stocks such as ARL, HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, MEBL and NBP traded in negative territory.

The KSE-100 closed at 174,453.93 points, decreasing by 5,149.80 points or 2.87%, from the previous close of 179,603.73.

The market had already remained bearish during the last week amid investor scepticism over political developments and recent domestic security incidents. These concerns, coupled with delays in the financial close of Reko Diq, weighed on the oil and gas sector, which recorded the largest index point decline. Overall, the benchmark index fell by 4,526 points, or 2.5% week-on-week (WoW), to close at 179,604 points.

However, two brokerage firms forecast that the PSX is expected to recover as domestic and geopolitical uncertainties subside, with investor focus likely to shift toward upcoming financial results and improving macroeconomic indicators. 

AKD Research expects the market to rebound as uncertainties ease, adding that attention will remain on the ongoing result season and macroeconomic stability.

Arif Habib Limited said the KSE-100 Index may witness temporary moderation in the coming week as Ramadan begins. But the ongoing earnings season could provide further upside, particularly if companies post stronger-than-expected results.

AKD also maintained its projection for the KSE-100 Index to reach 263,800 by December 2026.

Globally, Asian markets traded in thin volumes due to holidays in China, South Korea, Taiwan and the United States. Japan’s Nikkei rose 0.2% following a 5% gain last week, while MSCI’s Asia-Pacific index excluding Japan edged up 0.1%.

South Korea’s market had surged 8.2% last week, and Taiwan gained nearly 6%.

Key global data releases are expected later in the week, including surveys of global manufacturing and US fourth-quarter GDP figures. Median forecasts point to annualised US growth of 3.0%, compared with 4.4% in the previous quarter.