KARACHI: On the eve of long Eidul Azha break, the Pakistan Stock Exchange (PSX) experienced extreme volatility as the benchmark KSE index briefly surpassed the 122,000 barrier. However, mid-session selling pressure forced the index into the red, bringing an end to its record-setting streak on Thursday.

The market weakened after the International Monetary Fund emphasised the need for strict enforcement of the agricultural tax.

It expressed concerns about the plan to sell surplus power at lower rates and called for a strategy to prevent tax evasion and financial leakage. Additionally, the Fund opposed provincial energy subsidies.

Ahsan Mehanti from Arif Habib Corporation said that expected higher taxes on banking and savings scheme income, POL levies in the budget for FY26, rupee instability, and dismal data on exports contracting by 10% in May played a catalyst role in the bearish close.

The index traded between its intraday high of 483 points and intraday low of 281 points to finally close at 121,641, down 157.87 or 0.13pc day-on-day, noted Topline Securities.

The top positive contribution to the index came from Engro Holdings, Packages Ltd, Services Industries, Colgate-Palmolive, and K-Electric, which collectively contributed 403 points. Conversely, Meezan Bank, Systems Ltd, Fauji Fertiliser, Bank Al-Habib, and Lucky Cement wiped out 320 points.

During the trading hours, investors chose to take some profits ahead of the four-day Eid break, as trading will resume on Tuesday, the day when the federal government unveils its budget for 2025-26, said Ali Najib, Deputy Head of Trading at AHL.

Market participation remained strong, with trading volume rising 22.26pc to 854.61 million shares, while the value traded decreased 26.75pc to Rs25.79bn on a day-on-day basis.

Published in Dawn, June 6th, 2025