PSX slips 719 points on pre-budget jitters, IMF-linked concerns

KARACHI: Profit-taking and uncertainty over possible tax measures in the upcoming federal budget dragged the Pakistan Stock Exchange (PSX) down on Tuesday.

The benchmark KSE-100 index settled at 118,971.13, marking a decline of 718.51 points or 0.6 per cent. During the session, the index fluctuated within a range of 1,373.28 points, hitting an intraday high of 119,900.37 -- up by 210.74 points -- and a low of 118,527.09, down by 1,162.54 points. The total volume for the KSE-100 index stood at 108.11 million shares.

Analysts attributed the negative trend to a lack of positive triggers and heightened investor caution ahead of the federal budget. Market sentiment was further dampened by recent IMF conditions, particularly the requirement to present the budget in line with targets agreed in the staff level agreement.

Ahsan Mehanti, analyst at Arif Habib Corp, said the market closed lower amid pre-budget uncertainty and concerns over parliamentary approval of proposed IMF-driven tax measures. These include the phasing out of industrial incentives and the introduction of tax reforms in the agriculture sector. He added that external risks -- such as US tariff policies, escalating tensions with India, falling global crude oil prices and continued rupee instability -- also contributed to the bearish sentiment.

Senior Equity Trader at Topline Securities Naveed Nadeem said the market remained volatile throughout the session, reflecting a day of consolidation. He noted that the index recorded an intraday high of 211 points and a low of 1,163 points, eventually closing 719 points down. According to Nadeem, the market’s decline was driven by persistent profit-taking and the absence of any meaningful positive developments.

Major index-heavy stocks including Fauji Fertiliser Company (FFC), United Bank Limited (UBL), Habib Bank Limited (HBL), Pakistan Petroleum Limited (PPL), and Engro (ENGROH) together contributed a 386-point drag on the index. Overall market activity also slowed, with total traded volume declining to 436 million shares and the total traded value falling to Rs20.7 billion. Premier Mercantile (PREMA) led the session in terms of volume, with 39 million shares changing hands.

Out of the 100 companies listed on the index, 40 closed higher, 57 declined, while three remained unchanged. Top losing companies for the day included Kohinoor Textile Mills Limited (KTML), Attock Gen Limited (AGL), TPL REIT Fund I (TPLRF1), Lotte Chemical (LOTCHEM), and Mughal Iron & Steel (MUGHAL). On the other hand, the top gainers were Pakistan Oil Mills Limited (POML), Pakistan Aluminium Beverage Cans (PABC), Bannu Woollen Mills (BNWM), Habib Metropolitan Bank (HMB), and Pioneer Cement (PIOC).

Companies that weighed most heavily on the index included FFC, UBL, HBL, PPL, and ENGROH. Conversely, those that added points included HMB, D. G. Khan Cement (DGKC), Meezan Bank (MEBL), PIOC, and Maple Leaf Cement (MLCF).

In terms of sectors, the index was dragged down primarily by commercial banks, oil and gas exploration companies, fertiliser, technology and communication, and investment and securities firms. Limited positive support came from the cement, leather and tanneries, power generation and distribution, refinery, and miscellaneous sectors.