PSX opens flat on Monday as investors remain cautious after volatile week

KARACHI: The Pakistan Stock Exchange (PSX) began the new trading week on a quiet note, with the benchmark KSE-100 Index opening at 163,304.13 points, mirroring Friday’s close, as investors remained cautious amid lingering concerns over weak corporate earnings, muted foreign inflows, and the upcoming futures rollover.

Last week, market participants showed restraint, reflecting continued uncertainty brought in by the decline driven by profit-taking. The benchmark index had lost 0.3 percent week-on-week on Friday, closing the week at 163,304 points, despite having briefly surged past the 168,000 mark earlier in the week on optimism over easing geopolitical tensions between Pakistan and Afghanistan.

Analysts said the flat opening on Monday signals investors’ reluctance to take fresh positions after a volatile week that saw significant swings in sentiment. The market appears to be in consolidation mode. With futures rollover ahead and weak bank earnings still weighing on confidence, range-bound activity is likely in the short term.

Last week’s session ended with mixed economic signals – the IMF warned of flood-related risks to Pakistan’s growth outlook, while the current account posted a modest surplus for September 2025. At the same time, a 34 per cent decline in foreign direct investment and rising profit repatriation highlighted persistent external account challenges.

Traders noted that institutional investors are likely to remain on the sidelines until clarity emerges on the central bank’s monetary policy outlook and the government’s proposed three-year power tariff relief package for industrial and agricultural sectors.

Meanwhile, improved IT export figures and stable foreign exchange reserves have offered some support, with select interest seen in technology and oil & gas sectors during early trading. Market observers expect volumes to remain subdued in the initial sessions of the week as investors await key corporate results and monitor regional developments.