The Pakistan Stock Exchange (PSX) experienced a shift to bearish sentiment on Monday, following a strong start to the session. Investor caution prevailed throughout the day as traders reacted to lingering security concerns and awaited clear market signals. The bearish trend reflects an extension of subdued sentiment from the weekend, as investors sought to take profits in a market with limited positive triggers.
According to Topline Securities Ltd, the PSX remained largely range-bound during the trading session, with participants keeping a cautious approach amid the rollover of November futures contracts. Market sentiment was further affected by a deterioration in the law and order situation in Peshawar, following a suicide attack on the Federal Constabulary headquarters. The attack heightened uncertainty and applied downward pressure on the benchmark KSE 100 index, particularly during the early hours of trade.
Despite the negative start, selective buying activity in the latter part of the session helped stabilize the index at 161,984. The KSE 100 index recorded an intraday high of 162,385 and a low of 161,241, eventually closing down by 118.84 points, or 0.07 percent, at 161,984.09 points. Key gainers such as Fauji Fertiliser, Engro Corporation, Pioneer Cement, Bank Al-Habib, and Habib Bank collectively contributed 499 points to the index, offering some support amid the overall decline. On the flip side, Mari Energies, Oil and Gas Development Company, Meezan Bank, Pakistan Oilfield, and Pakistan Petroleum led losses, subtracting a combined 347 points from the benchmark.
Trading activity reflected investor caution, with total market participation weakening significantly. Volumes fell 36.15 percent to 490.3 million shares, while the total traded value declined by 17.37 percent to Rs23.66 billion. PIA Holding Company dominated the volume chart, with 63.2 million shares exchanged during the session, underscoring concentrated trading in select stocks rather than broad market participation.
Market analysts noted that Monday’s session was characterized by muted volatility and limited directional movement. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the day as neutral, emphasizing that investors were waiting for clearer signals at the start of the rollover week before committing to significant positions.
On the corporate front, the Federal Cabinet approved the diversion of 24 to 29 surplus LNG cargoes from Qatar under the FY26 Net Proceed Differential mechanism, following prior clearance from the Economic Coordination Committee. While this move supports energy availability, it had a limited impact on immediate market sentiment.
Looking ahead, analysts anticipate that the KSE 100 index will likely consolidate between 157,000 and 164,000 points for the remainder of the week. Market observers caution that avoiding a new low in upcoming sessions will be critical to stabilizing the index and laying the groundwork for a potential rebound. Investor focus remains on both security developments and corporate news that could provide directional momentum for the market.
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