KSE-100 closes flat ahead

KARACHI: The Pakistan Stock Exchange (PSX) closed flat on Monday, weighed down by persistent geopolitical tensions and market speculation ahead of the monetary policy announcement. The Monetary Policy Committee of the State Bank of Pakistan eventually announced a 100-basis point cut, bringing the key policy rate down to 11 per cent.

The benchmark KSE-100 index closed lower by 11.7 points, or 0.01 per cent, to 114,102.24 points, down from 114,113.94 points recorded in the last session. The highest index of the day remained at 114,552.21 points, while the lowest level was recorded at 113,077.67 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks closed flat amid investor uncertainty following the government’s security measures to suspend trade ties and ban Indian flag carriers, alongside ambiguity surrounding the SBP’s policy stance and a decline in global crude oil prices.

He said that rupee volatility and concerns over the potential fallout from escalating Pakistan-India border tensions also contributed to the market’s bearish close.The KSE-30 index decreased by 108.83 points or 0.31 per cent to 34,808.6 points from 34,917.43 points.

Traded shares rose by 27 million shares to 399.538 million shares from 372.363 million shares. The trading value dropped to Rs19.852 billion from Rs23.285 billion. Market capital expanded to Rs13.822 trillion against Rs13.808 trillion. Of the 452 companies active in the session, 240 closed in green, 155 in red and 57 remained unchanged. Naveed Nadeem, an analyst at Topline Securities, said the benchmark index was quite volatile during the day’s session, falling by 1,036 points in early trading. However, it made a strong recovery in the second half, mainly supported by the cement sector, as investors expected a possible rate cut in the monetary policy announcement made Monday evening.

This recovery was mostly helped by key stocks like FFC, DGKC, FCCL, POIC, and MLCF, which together added about 276 points to the index.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs480.30 to Rs5,283.26 per share, followed by Nestle Pakistan Limited, which increased by Rs288.09 to Rs7,190.36 per share. A significant decline was noted in Atlas Honda Limited, which fell by Rs25.19 to Rs1,150.36 per share; Bata Pakistan Limited followed it, which closed lower by Rs15.29 to Rs1,564.71 per share.

Muhammad Rizwan, director brokerage at Chase Securities Pakistan (Pvt) Limited, said despite no further escalation between Pakistan and India, tensions remain elevated, with rumours of potential changes in US travel advisories for both countries continuing to weigh on market sentiment.

In its latest monetary policy announcement, the State Bank of Pakistan (SBP) cut the benchmark interest rate by 100 basis points (bps). This move had been widely anticipated and triggered renewed investor interest in cyclical sectors. Cement stocks, particularly highly leveraged companies such as DG Khan Cement (DGKC) and Power Cement, led the rally, posting gains between 4.0 per cent and 7.0 per cent, he said.

Consumer-focused stocks also saw upward momentum, with companies like Pak Elektron Limited (PAEL) and Sazgar Engineering Works (SAZGAR) rising by around 3.0 per cent, reflecting investor optimism around lower borrowing costs and increased consumer spending potential, he said.

Power Cement remained the volume leader with 41.339 million shares, which closed higher by 98 paisas to Rs14.91 per share. WorldCall Telecom, with 23.846 million shares, followed it, which closed higher by 7 paisas to Rs1.34 per share. Other significant turnover stocks included Maple Leaf, Sui South Gas, Hascol Petrol, K-Electric Ltd, BO Punjab, Dewan Cement, DGK Cement and Fauji Cement.

In the futures market, 333 companies recorded trading, 212 of which increased, 117 decreased, and 4 remained unchanged.