KARACHI: In a topsy-turvy trading session, the Pakistan Stock Exchange (PSX) closed in positive territory on Monday.

Ahsan Mehanti of Arif Habib Corporation said the stock market closed flat amid uncertainty in the pre-budget session, with a $3.4bn trade deficit for April depicting falling exports and geopolitical tensions. Investor concerns over proposed Rs700bn new tax measures and lowering economic growth forecast to 2.6pc by IMF for FY25 impacted investor sentiments.

However, he added that the projections for higher tax collection at 12.6pc of GDP at Rs14.4tr and easing monetary policy contributed to a positive close.

According to the brokerage house Topline Securities Ltd, the market witnessed a consolidation phase as it hovered close to its all-time high. The index moved within a wide range, recording an intraday high of 636 points and a low of 398 points, before closing at 119,689.63, up 40.49 points or 0.03pc day-on-day.

The steady upward bias was supported by investor optimism following the release of a detailed IMF report on the first review under the current Extended Fund Facility, which offered a clearer picture of the country’s macroeconomic trajectory and policy direction.

Adding to the positive sentiment, fresh developments on resolving the circular debt issue once again made headlines, drawing investor interest to key energy and gas sector players, including Pakistan Petroleum Ltd (PPL), Oil and Gas Development Company, PSO, Sui Northern Gas Pipeline, and Sui Southern Gas Company.

On the upside, heavyweights such as Engro Holdings, PPL, and PSO led the charge, collectively contributing 246 points to the index. Conversely, Mari Energies, United Bank, and Lucky Cement collectively erased 224 points.

Market participation declined as the trading volume dipped 25.67pc to 425.37 million shares while the traded value fell 23.26pc to Rs22.27bn.

With the index trading near record territory, the market appears to be taking a breather while maintaining its bullish undertone—awaiting potential triggers to break new ground.

Ali Najib, Head of Sales at Insight Securities, stated that Pakistan’s strong external position, surplus, and declining inflation could stimulate economic activity and lead to a monetary easing, which would benefit the equity market.

Published in Dawn, May 20th, 2025