KSE-100 Index down 881 points as profit taking rules PSX

KARACHI: The stock market witnessed profit taking on Monday as uncertainty continued to weigh on investor sentiment. Hence, the KSE-100 Index declined by 881 points, or 0.74 per cent, to settle at 118,221.

At one stage, the benchmark index was down by 952 points.

The bearish trend was primarily driven by concerns over the delay in the federal budget announcement and the lack of clarity regarding the IMF conditions tied to it. In the absence of positive triggers, investors chose to trim their positions and adopt a cautious stance, Topline Securities stated.

“The uncertain mindset of investor slashed the market points today stemming from delayed and revised budget announcement date,” Al Habib Capital stated.

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Moreover, the oil sector, particularly the exploration and production segment came under pressure due to the IMF’s rejection of the circular debt retirement plan, it added.

“The benchmark index ended the day in the red, market sentiment remained subdued, awaiting fresh cues that could shift the momentum in either direction,” according to Ismail Iqbal Securities’ note.

KEL led the volume chart with 246 million shares being traded, following the news that K-Electric has secured a dollar-linked tariff for its transmission and distribution business.

On the other hand, the energy stocks came under pressure amid rumours of a potential delay in the clearance of circular debt, with PPL, OGDC, and PSO emerging as major losers.

Meanwhile, key index heavyweights – including ENGROH, SYS, PSO, FFC, and OGDC – collectively contributed to a 452-point decline in the KSE-100 Index.

However, overall market participation remained robust, with traded volume and value standing at 634 million shares and Rs18.5 billion respectively.