Profit-Taking Hits PSX: KMI-30 Slides 0.40% Despite Early Rally

After starting the day with optimism, the Pakistan Stock Exchange ended Monday on a disappointing note as investors booked profits in key blue-chip stocks, pushing the KMI-30 index down by more than 1,000 points.
The Shariah-compliant benchmark initially surged to an intraday high of 272,969 points, reflecting strong early buying. However, the momentum failed to sustain, and mounting selling pressure gradually pulled the market into negative territory.
By the close, the index settled at 268,418 points, down 0.40 percent, wiping out early gains.
What Went Wrong?
Market observers believe profit-taking in heavyweight banking and energy stocks triggered the decline. Meezan Bank, one of the most influential components of the KMI-30, alone dragged the index significantly lower. Selling pressure intensified in Engro Holdings and Lucky Cement, accelerating the slide.
The sharp retreat suggests that many investors preferred locking in recent gains rather than holding positions amid uncertain economic signals.
Bright Spots Remain
Even during the downturn, several stocks showed resilience. Sazgar Engineering emerged as the star performer, followed by Systems Limited, which attracted fresh buying interest from institutional investors.
Tractors and fertilizer shares, including Millat Tractors and Fauji Fertilizer, also contributed positively, signaling sector-specific strength.
Trading Activity
The total traded volume for index constituents reached 155 million shares, reflecting steady but cautious participation. Analysts say investors are becoming more selective, favoring stocks with strong fundamentals rather than speculative bets.
Bigger Picture
Despite the day’s losses, the KMI-30 remains in positive territory on a broader scale. The index has delivered:
45.18% gains in FYTD
8.00% gains in CYTD
This indicates that the longer-term trend still favors investors.
Analyst View
Experts expect short-term consolidation as the market digests recent rallies. They advise traders to focus on quality stocks and avoid panic selling.
With corporate results season approaching, stock-specific movements may dominate future sessions rather than broad market trends.
For now, investors remain watchful, balancing optimism with caution as the PSX navigates mixed economic signals.