Pakistan stocks close lower amid cautious sentiment ahead of budget

KARACHI: Pakistan stocks closed in the red on Thursday, with the benchmark KSE-100 Index falling 778 points, or 0.65 per cent, to settle at 119,153.04 amid cautious sentiment ahead of the federal budget, analysts said.

“Stocks closed under pressure in the pre-budget session at PSX amid uncertainty over the outcome of IMF-driven new tax measures proposed for the oil, fertiliser and auto sectors in the federal budget FY26,” said Ahsan Mehanti, CEO at Arif Habib Commodities.

He added that security concerns, escalating tensions with India, and rupee instability also contributed to the bearish close.

The benchmark index ended in negative territory after a highly volatile session. Investors remained cautious and engaged in portfolio adjustments as uncertainty around fiscal measures kept sentiment mixed throughout the day, Ismail Iqbal Securities said in a note.

PSX jumps over 700 points, PKR appreciates

Topline Securities said the market remained in consolidation mode, with the index fluctuating within a limited range. It posted an intraday high of 768 points and a low of 869 points, facing resistance near the 120,000 mark before closing at 119,153, down 778 points or 0.65 per cent.

The decline was largely attributed to falling global oil prices, which weighed heavily on oil-related stocks, it added.

Among major laggards, ENGROH, LUCK, PPL, PSO and HUBC collectively shaved 537 points off the index.

Trading activity remained strong, with total volume reaching 588 million shares and a traded value of Rs30.7 billion. K-Electric (KEL) led the volumes chart with 42 million shares traded.

In the previous session, the Pakistan Stock Exchange had kicked off the day with a strong rally, as the KSE-100 surged by as much as 1,135 points intraday. However, the index failed to sustain momentum and closed just short of the 120,000 level, still posting impressive gains.