KEY POINTS
- KSE-100 slips 1,237 points (-0.74%) to close at 167,752 amid broad profit-taking.
- Over 1.27 billion shares worth Rs 60.5 billion traded on the Ready Market.
- Energy and fertiliser stocks lent support; banks and mid-caps dragged sentiment.
- Analysts term decline a healthy correction after strong prior sessions.
ISLAMABAD: The Pakistan Stock Exchange ended the first session of the week on a softer note, as investors booked profits in leading names and sentiment cooled across sectors on Monday.
The benchmark KSE-100 index dipped 1,237.67 points (-0.74 %) to close at 167,752.40, according to official PSX data. Trading activity remained vigorous, with a total of 1,274,364,327 shares exchanged at a value of Rs 60.54 billion.
Market breadth tilted decisively bearish. 108 stocks up, 348 declined, and 31 unchanged. The All Share Index fell 0.89 %, while KSE-30 dropped 0.92 %, signalling weakness beyond a few select names.
Session Dynamics
From the start, the market faced resistance, with early enthusiasm waning in the face of profit-booking. Energy and fertiliser counters showed relative resilience, absorbing some inflows and mitigating sharper losses.
In contrast, financial and mid-cap stocks underperformed, contributing to the breadth negative outcome. Intraday swings were moderate, with the index oscillating between support and resistance zones before settling near session lows.
Sector rotation was muted today; investors preferred trimming exposure rather than chasing fresh sectors.
The rally’s prior strength likely set the stage for today’s pullback. Heavyweight names in the energy/fertiliser space helped anchor the index, but could not fully offset pressure from laggards.
Broader Context & Market Sentiment
Analysts suggest today’s decline is a natural correction after several strong sessions. Short-term traders exploiting the opportunity cashed in on gains in overextended names. With foreign flows remaining limited and the US dollar firming globally, external sentiment offered little support.
Reuters commentary on Asia markets has flagged cautious positioning ahead of key global macro releases, a tone that appears to be filtering into local equity markets, as well.
Meanwhile, local analysts noted that structural liquidity remains present, cushioning sharper drops despite weak intraday momentum.
Risks & Outlook
While the pullback may offer healthier price consolidations, risks remain. Overconcentration in a handful of names could accelerate volatility should selling intensify. Macroeconomic surprises — particularly with inflation, fiscal policy, or external funding — could also rattle sentiment.
Technically, support lies in the band of 163,500 – 166,000, and resistance remains in the 170,000 – 171,500 range. For a sustained rebound, renewed institutional flows and clear macro signals will be essential.
