KARACHI: Investors on Monday adopted a cautious approach at the Pakistan Stock Exchange (PSX), resulting in both major benchmark indices closing in the negative zone at the close of trading. Although the market opened positively in the early trading hours, profit-taking in various sectors and selling pressure in large stocks later changed the overall trend.
At the close of trading, the KSE-100 index closed at 178,414.80 points, down 1,156.47 points or 0.64 percent, while the KMI-30 index fell 2,525.45 points or 0.98 percent to 254,200.25 points.
The market started the day on a positive note with investors buying into some select companies. Meanwhile, the KSE-100 index reached a high of 180,272.02 points, but after the afternoon, the index lost all its initial gains and fell to a low of 178,331.00 points due to increased selling pressure.
Similarly, the KMI-30 index, which consists of Sharia-compliant companies, also reached 257,202.34 points in the initial session, but later fell to a low of 254,063.70 points due to overall market weakness.
The most pressure in the market on Monday was seen on shares of energy, fertilizers, oil and gas and a few large blue-chip companies. The selling trend in these sectors played a major role in bringing down the overall index.
In the KSE-100 index, Fauji Fertilizer Company (FFC), Hub Power Company (HUBC), Oil and Gas Development Company (OGDC), Bank Alfalah (BAFL) and Lucky Cement (LUCK) were among the companies that had the most negative impact on the index.
On the other hand, International Industries (ILP), Engro Holdings (ENGROH), Kohat Cement (KOHC), Dawood Hercules (DCR) and International Steel (ISL) showed positive performance and provided some support to the market, however, this could not prove to be enough to stop the overall decline.
In the KMI-30 index too, ENGROH, PAEL and GAL were the prominent stocks that played a positive role, while HUBC, FFC, OGDC, LUCK and PPL contributed the most negative points.
According to the data, the total trading volume of shares of companies included in the KSE-100 index was 330.97 million shares, while 128.37 million shares were traded in companies included in the KMI-30 index.
The trading volume indicates that investors did not completely exit the market but continued to trade in specific sectors in a cautious manner.
Although the market witnessed a decline on Monday, the overall performance of the Pakistan Stock Exchange during the financial year is still considered strong.
The KSE-100 index has maintained a 42.02 percent increase since the beginning of the financial year, while it has recorded a 2.51 percent increase during the calendar year 2026.
Similarly, the KMI-30 index has also increased by 37.49 percent during the financial year, while it has maintained a 2.28 percent increase since the beginning of the calendar year.
These figures reflect that despite the recent decline, the market has provided significant profits to investors over the past several months.
According to market experts, profit-taking was a major reason for the significant decline in the recent session. When the market remains at a high level for several consecutive weeks, many investors sell shares to secure their profits, which creates temporary pressure.
Analysts say that investors are now keeping a close eye on upcoming economic data, monetary policy, inflation situation, rupee value, global crude oil prices and quarterly financial results of companies. These factors may determine the direction of the market in the coming days.
According to them, if economic indicators improve as expected and companies’ financial results come out strong, there may be a buying trend in the market again.
Financial experts believe that the current decline can be seen as a natural market correction rather than a long-term downturn. According to him, short-term volatility is normal after the extraordinary boom of the past few months.
Investors are being advised to base their investment decisions on the fundamental financial position of companies, profitability, future growth and economic indicators, rather than on daily price fluctuations.
Although Monday’s session was negative, the overall annual performance of the Pakistan Stock Exchange is still positive, indicating that investor confidence has not completely disappeared. Market participants are now looking forward to upcoming economic announcements and corporate results, which will play a significant role in determining the investment trend in the future.