Stocks tumble 881 points on lack of triggers
KARACHI: The Pakistan Stock Exchange (PSX) on Monday continued its southward journey as concerns grew over an ‘unfriendly’ budget as the government and the International Monetary Fund remained busy fine-tuning the budgetary proposals, which are set to be unveiled on June 10 after a week’s delay.
The benchmark KSE-100 index declined by 881.55 points, or 0.74 per cent, to close at 118,221.12 points, after touching an intraday low of 952 points.
Topline Securities Ltd said concerns over the delay in the federal budget announcement and the lack of clarity regarding the IMF conditions primarily drove the bearish trend.
In the absence of positive triggers, investors chose to trim their positions and adopt a cautious stance.
K-Electric led the volume chart with 246 million shares traded, closing at its upper circuit, following news that it has secured a dollar-linked tariff for its transmission and distribution business.
Ali Najib, Deputy Head of Trading at Arif Habib, said the market witnessed sideways movement as uncertainty surrounding the upcoming federal budget and lack of clarity on IMF conditions weighed on investor sentiment. Media reports suggesting disagreements with the IMF over the circular debt resolution plan and the onset of the roll-over week further contributed to the cautious mood.
A standout performer of the day was K-Electric, which surged to its upper circuit at Rs5.72. The rally followed the announcement of its much-anticipated multi-year tariff over the weekend. KE also topped the volume chart, recording a staggering 246.9 million shares traded.
Engro Holdings, Systems Ltd, PSO, Fauji Fertiliser, and Oil and Gas Development Company lowered the index by 453 points. Conversely, KE, Pakistan Services Ltd, Attock Refinery, Pakistan Telecommunication Company, and Engro Fertiliser added 224 points.
Investors will likely remain cautious amid ongoing macroeconomic uncertainty in the coming sessions. The market is expected to consolidate within a defined range, with support around 115,000 and resistance near 121,000, as participants await more clarity from the federal budget announcement.
The trading volume surged 88.02pc to 635.53 million shares while the traded value rose 0.35pc to Rs18.57bn.
Published in Dawn, May 27th, 2025