KARACHI: The Pakis­tan Stock Exchange (PSX) snapped its three-session winning streak as investors indulged in profit-taking towards end of the session, dragging the benchmark KSE 100 index in the red zone after scaling an all-time high above 120,000 intraday.

Topline Securities Ltd stated that the stock market exhibited volatility, with the index fluctuating within a wide range, primarily influenced by global market trends. Local equities faced selling pressure amid uncertainty surrounding the upcoming budget and the government’s proposed 2–3pc hike in the tax rate on passive income.

During the session, the index reached an intraday high of 1,018 points and a low of 899 points, eventually closing at 118,877.81 — a drop of 813.29 points, or 0.68pc day-on-day.

Upward momentum was supported by notable gains in Packages Ltd, National Foods Ltd, Meezan Bank, NBP, and Bank Al-Habib, which collectively added 201 points to the index. Conversely, losses in Sys­tems Ltd, Engro Holdings and Pakistan Petroleum dragged the index down by a combined 341 points.

Ahsan Mehanti of Arif Habib Corporation said the PSX came under pressure due to reports of higher taxes on banking and savings scheme income, as well as POL [petrol oil and lubricants] levies in the upcoming federal budget, which impacted sentiments.

He added that concerns over geopolitical tensions and rupee instability did contribute to the bearish close.

Ali Najib, Deputy Head of Trading at AHL, said the index once again attempted to settle above the 120,000 barrier but failed to hold above it due to aggressive selling in the late session.

Market participation wea­kened as trading volume fell 14.19pc to 497.94 million shares, while the value traded rose 3.1pc to Rs23.45 billion day-on-day.

Published in Dawn, June 3rd, 2025