KARACHI: As the Pakistan Stock Exchange (PSX) switched to a faster T+1 settlement cycle on Monday, market volatility persisted amid a dearth of positive triggers, as shaky investors continued taking profits amid broader economic concerns, pulling the benchmark index below the 181,000-point barrier intraday.

Topline Securities Ltd said the KSE-100 index closed lower at 182,340.38 points, shedding 1,789.20 points after a highly volatile session. The benchmark index moved within a wide range, touching an intraday high of 185,650.60 points before slipping to a low of 180,992.80 points.

The decline was led by heavyweight stocks, with Oil and Gas Development Company, Meezan Bank, Pakistan Petroleum Ltd, United Bank Ltd and Lucky Cement together dragging the index down by 932 points. These losses were partially offset by gains in select large-cap stocks, including Sazgar Engineering Works Ltd, MCB Bank and Nestle Pakistan, which collectively added around 220 points.

Market activity weakened, with total traded volume falling 26.8pc to about 931 million shares, while the value of shares traded declined 2.45pc to Rs58.8bn. K-Electric dominated volumes, with approximately 302 million shares traded.

PSX makes smooth transition to faster T+1 settlement system

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the benchmark index opened on a positive note and climbed to an intraday high of 185,651 points. However, sentiment turned negative as the session progressed, with institutional selling triggering a sharp pullback.

He noted that the transition from T+2 to T+1 settlement was implemented smoothly and should be viewed as a structural change rather than a driver of prevailing market trends.

The T+1 replaces the previous T+2 system, meaning equities and deliverable futures trades will settle one business day after the trade date, accelerating the transfer of funds and securities, reducing risk, and improving market liquidity.

On the corporate side, Meezan Bank Ltd announced earnings per share of Rs11.88 for 4QCY25 along with a dividend of Rs7 per share, supported by improved spreads and deposit growth, although weaker non-funded income weighed on profitability. Allied Bank Ltd reported 4QCY25 earnings of Rs3.29 per share and declared a dividend of Rs1.75; quarterly earnings declined due to higher costs and subdued non-interest income, while full-year indicators showed improvement.

Analysts said the broader market trend remained one of consolidation, with the KSE-100 expected to trade in a volatile range between 180,000 and 190,000 points in the near term.

Published in Dawn, February 10th, 2026