KARACHI: The stock market extended its overnight bearish trend on Thursday as investors continued to offload positions to lock in profits ahead of the rollover week’s close.

Ahsan Mehanti of Arif Habib Corporation attributed the decline to concerns over rupee instability, expectations of further depreciation amid rising imports and subdued remittances, as well as persistent inflation. He added that unresolved issues raised by trade bodies regarding the Federal Board of Revenue’s enforce­ment powers, along with reports that the IMF had rejected a proposed reduction in industrial power tariffs, also weighed on investor sentiment.

Topline Securities noted that, after a sustained rally in recent sessions, the local bourse experienced a pullback, with the KSE-100 index undergoing a volatile session. The index swung between an intraday high of 613 points and a low of 561 points before closing at 138,692 — down 561 points or 0.4pc.

The session reflected a tug-of-war between bullish momentum and caution driven by rollover pressure, with market participants largely inclined towards profit-booking. Analysts expect choppy trading to continue in the near term, with selective interest guiding the market’s direction.

Major laggards included Fauji Fertiliser, Habib Bank, Engro Holdings, Ma­ri Petroleum, and Engro Fertiliser, which collectively dragged the index down by 506 points. However, support came from Hub Power, MCB Bank, and Systems Ltd, which added a combined 204 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the cautious stance among investors stemmed from rupee volatility, expectations of renewed inflationary pressure, and ongoing foreign outflows from the Pakistan Stock Exchange.

Market participation weakened as total traded volume declined by 1.19pc to 648.8 million shares, while traded value dropped by 12.39pc to Rs28.11bn. The Bank of Punjab led the volumes chart with 113.02 million shares changing hands.

Published in Dawn, July 25th, 2025