KARACHI: The Pakistan Stock Exchange (PSX) halted its three-day losing streak on Tuesday, posting modest gains on some value-hunting. However, the short-term market outlook remains bearish as investors exercise caution ahead of the unveiling of taxation measures for the next fiscal year.

Ahsan Mehanti of Arif Habib Corporation noted that the equity market showed some recovery amid speculations in the pre-budget session. Hopes for a real estate package in the federal budget attracted interest in cement stocks.

Investor concerns over the IMF’s disagreement on key budgetary targets, subsidies, and rupee instability led to mid-session selling pressure. The government’s measures for raising tax collection targets amid an easing fiscal deficit played a catalytic role in the positive close at the PSX.

Topline Securities Ltd stated that the stock market experienced a range-bound session, with the index fluctuating within a narrow band due to rollover pressures and uncertainty surrounding the upcoming budget. The benchmark KSE 100 index touched an intraday high of 587 points and a low of 77 points before settling at 118,332.91 — up by 111.79 points or 0.09 per cent day-on-day.

Positive momentum was driven by notable contributions from Meezan Bank, Systems Ltd, Packages Ltd, Pakistan Petroleum Ltd, and DG Khan Cement, which together added 223 points to the index. Conversely, United Bank, Hub Power, Pakistan Services Ltd, Engro Holdings, and MCB Bank wiped out 246 points.

K-Electric continued to be the volume leader for the second consecutive day as the stock witnessed a change of hands of over 267 million shares and ended the session at Rs5.89, up 2.97pc.Overall market participation remained strong, with total traded volume exceeding 689.6 million shares and a turnover of Rs 23.8 billion.

Published in Dawn, May 28th, 2025