The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Monday as the benchmark KSE-100 Index closed with a loss of nearly 400 points, driven by broad-based profit-taking ahead of end-of-July futures contract expiry. The index settled at 138,217.58, marking a decline of 379.78 points or 0.27% from the previous close.
Throughout the day, the market fluctuated between an intra-day high of 139,201 and a low of 138,150, indicating uncertainty among investors following last week’s record-setting performance. Brokerage firm Topline Securities, in its post-market commentary, highlighted the range-bound behavior, attributing the pressure to selling in key heavyweights including Fauji Fertilizer Company (FFC), United Bank Limited (UBL), Oil and Gas Development Company (OGDC), Systems Limited (SYS), and Hub Power Company (HUBC), which collectively pulled the index down by 438 points.
Despite the bearish tilt, a few stocks such as Habib Bank Limited (HBL), Engro Fertilizers (EFERT), and Pakistan Aluminium Beverage Cans (PABC) provided partial support, adding back 152 points to the index.
The decline comes after a historic week for the PSX, where investor optimism, driven by favorable macroeconomic indicators and expectations of strong corporate earnings, propelled the index to an all-time closing high of 138,597. Last week’s gain of 3.2% or 4,297 points was the largest in the exchange’s trading history.
Analysts said the pullback was anticipated, especially as traders opted to secure profits following such an aggressive rally. The dip is also consistent with typical behavior seen during contract rollover periods, particularly when coupled with cautious summer trading.
On the global front, Asian markets showed resilience on Monday following political developments in Japan, where the ruling coalition lost control of the upper house. Despite this, the Japanese yen firmed by 0.4% against the US dollar, trading at 148.29. Wall Street futures also held steady in anticipation of key earnings reports from major U.S. tech firms and possible progress in international trade discussions. Reports suggested a meeting between U.S. President Donald Trump and China’s President Xi Jinping may be delayed until October, adding a layer of uncertainty to global investor sentiment.
Back home, the Pakistani rupee also showed slight weakness, depreciating by 0.03% in the inter-bank market. The currency closed at 284.95 against the U.S. dollar, down by Re0.08.
On the trading floor, volumes remained steady but overall value saw a noticeable dip. The all-share index recorded a trading volume of 608.19 million shares, marginally down from 609.44 million in the previous session. The total value of traded shares dropped significantly to Rs23.52 billion from Rs31.62 billion.
Among the top volume leaders, Prud Mod.1st led with 58.74 million shares, followed by K-Electric Limited with 53.17 million shares, and Pakistan International Bulk Terminal (Pak Int. Bulk) with 51.73 million shares.
Out of the 479 companies that traded during the session, 193 closed in the green, 245 declined, and 41 remained unchanged.
With contract rollovers ahead and global uncertainties on the horizon, analysts expect short-term volatility to persist, though long-term sentiment remains cautiously optimistic as corporate results begin to roll in.