KEY POINTS
- KSE‑100 Index fell by 1,140.32 points (-0.70%) to close at 162,163.81.
- Market breadth weak: 157 advancing, 277 declining, 45 unchanged.
- Turnover moderate: 1,006.7 million shares traded, valued at Rs 34.82 billion.
- Oil & gas, cement and broader heavy-industrial sectors weighed on sentiment;
- Banks and some other selective names showed resilience.
ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a modest retreat on Monday as the KSE-100 index slipped to 162,163.81, down 1,140.32 points, or 0.70 per cent.
Investor caution prevailed amid anticipation of the State Bank of Pakistan’s Monetary Policy Committee meeting and concerns over global commodity price volatility and domestic economic uncertainty.
Most traders remained on the sidelines, suspecting that the SBP would keep the policy rate unchanged, which it confirmed in the evening.
Top traded names drove the fall
Trading volume rose above one billion shares (1,006.7 million) with a value of about Rs 34.82 billion. Heavyweights, particularly in the oil & gas marketing, cement and auto sectors, dragged the market.
Although some financials posted gains, broad selling dominated as investors adopted a wait-and-see stance.
Drivers and underlying sentiment
The slide reflects a combination of factors: Elevated core inflation at 7.3 per cent, headline inflation rising to 5.6 per cent in September, and global commodity price swings undermining confidence.
The SBP’s monetary update — which highlighted that flood-related supply disruptions were less severe than earlier feared — has helped ease some worries, but market participants remain cautious.
Fiscal consolidation and rising private-sector credit add some positive notes, but heightened sensitivity to external and domestic shocks is curbing risk appetite.
Regional and global linkages
The decline also comes amid weaker sentiment in the emerging markets broadly, coupled with concerns over global oil prices and the impact on Pakistan’s import bill.
While the current account surplus in September was modest and FX reserves were building, markets appear to be positioning for any surprise from the upcoming policy decision.
Outlook
With the SBP’s latest policy statement portraying a cautiously optimistic outlook, trading is expected to remain subdued.
Keeping the rate unchanged by the central bank may stabilise the market; a hawkish surprise could reignite selling pressure.
Investors are advised to monitor external flows, corporate earnings updates and the rupee-rate trend for directional cues.
