Selling pressure at PSX: KSE-100 sheds over 2,000 points

The Pakistan Stock Exchange (PSX) faced selling pressure on Monday as the benchmark KSE-100 Index lost over 2,000 points, with analysts attributing the downturn to concerns related to the International Monetary Fund (IMF) loan.

The market remained under pressure throughout the trading session, dragging the KSE-100 to an intra-day low of 116,257.51.

At close, the benchmark index settled at 116,439.62 level, a decrease of 2,002.55 points or 1.69%.

“The market faced downward pressure due to IMF concerns over the lack of adjustments to electricity tariffs and no reduction in property taxes, as reported in the news. Additionally, the proposed increase in royalty for cement manufacturers in KP [Khyber Pakhtunkhwa] contributed to the negative sentiment,” brokerage house Topline Securities said in its post-market report.

The decline was primarily driven by OGDC, ENGRO, FFC, PPL, and MARI, which exerted downward pressure, pulling the index down by 811 points, it said.

“The cement sector is down amid reports that the KP government is proposing a significant change in the royalty structure for cement manufacturers,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.

“Secondly, volumes are low amid the upcoming Eid holidays. Moreover, this is a rollover week and the market is under pressure,” she added.

Last week, the PSX maintained a jubilant streak, closing at an all-time high of 118,442.18 points compared to 115,536.17 points in the previous week.

Internationally, financial markets made a mixed start on Monday with US stock futures rising but the dollar wavering ahead of a week driven by data, Chinese earnings and the threat of steep US tariff hikes on the horizon.

S&P 500 futures were up about 0.6% in the Asia morning and Nasdaq 100 futures rose 0.8%. Japan’s Nikkei and Hong Kong’s Hang Seng climbed about 0.2%.

The week holds global purchasing managers index gauges, the US Federal Reserve’s preferred inflation reading, inflation data in Australia and Japan, a budget update in Britain and major earnings in China.

But it is likely to be updates on US President Donald Trump’s plans for global reciprocal tariffs from April 2 that drive markets, and after a volatile month for stocks, bonds and currencies, analysts said there is no obvious trade ahead.

Trump has vowed to impose a complicated barrage of tariffs next week, the details of which are not clear save that they are to be calculated to reflect the impact of foreign tariffs and foreign value-added taxes on imports.

The S&P 500 eked out a gain on Friday after Trump hinted at flexibility. However, after a rollercoaster first two months in power - including tariff hits on China, Mexico and Canada - traders are shy of betting that Trump is ready to cut deals.

Ten-year US Treasury yields have fallen nearly 40 basis points from mid-February highs and were last steady at 4.27% and investors have been drawn abroad from US stocks, with sharp rallies in Hong Kong and Europe as Wall Street fell.

Meanwhile, the Pakistani rupee saw marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Monday. At close, the currency settled at 280.37, a fall of Re0.11 against the greenback.

Volume on the all-share index decreased to 311.97 million from 369.12 million recorded in the previous close.

Whereas, the value of shares declined to Rs20.95 billion from Rs23.27 billion in the previous session.

Pak Elektron was the volume leader with 28.62 million shares, followed by Cnergyico PK with 19.22 million shares, and TRG Pak Ltd with 15.74 million shares.

Shares of 468 companies were traded on Monday, of which 124 registered an increase, 266 recorded a fall, while 78 remained unchanged.