Stocks down 813 points on pre-budget pressure

KARACHI: The Pakistan Stock Exchange (PSX) closed lower on the start of the week in a volatile session amid pre-budget pressure.

The benchmark KSE-100 index decreased by 813.29 points, or 0.68 per cent, to 118,877.81 points, down from 119,691.09 points recorded in the last session. The highest index of the day remained at 120,590.77 points, while the lowest level was recorded at 118,672.84 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed under pressure in the pre-budget session at the PSX. Reports of higher taxes on banking and saving schemes income and POL levies in the Budget FY26 impacted the sentiments.”

He said that concerns over geopolitical tensions and rupee instability played a catalytic role in the bearish close. The KSE-30 index decreased by 309.56 points or 0.85 per cent to 36,144.59 points from 36,454.15 points.

Traded shares dropped by 83 million shares to 497.94 million shares from 580.318 million shares. The trading value increased to Rs23.45 billion from Rs22.743 billion. Market capital expanded to Rs14.444 trillion against Rs14.503 trillion. Of the 464 companies active in the session, 193 closed in green, 231 in red and 40 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the stock market exhibited volatility, with the index fluctuating within a large band, primarily influenced by global market trends. He said local equities faced selling pressure amid uncertainty surrounding the upcoming budget and the government’s proposed 2-3 per cent hike in the tax rate on passive income.

Upward momentum was supported by notable gains in PKGP, NATF, MEBL, NBP, and BAHL, which collectively added 201 points to the index. Conversely, losses in SYS, ENGROH, and PPL dragged the index down by a combined 341 points.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs2,937.45 to Rs32,311.99 per share, followed by Khyber Textile Mills Limited, which increased by Rs279.07 to Rs3,069.78 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs41.89 to Rs9,919.02 per share; SS Oil Mills Limited followed it, which closed lower by Rs41.31 to Rs788.43 per share.

Mubashir Anis Naviwala, an analyst at JS Global, said the selling pressure dragged the index down. “Looking ahead, we expect market pressure to persist in the near term; however, this may present a buying opportunity in select sectors. Investors are advised to accumulate fundamentally strong stocks in the cement, automobile and fertiliser sectors on dips.”

Dewan Cement remained the volume leader with 40.375 million shares, which closed higher by 50 paisas to Rs12.67 per share. Invest Bank, with 31.862 million shares, followed it, which closed higher by 84 paisas to Rs2.31 per share.

Other significant turnover stocks included K-Electric Ltd, WorldCall Telecom, Fauji Foods Ltd, Kohinoor Spinning, National Bank XD, Sui South Gas, Maple Leaf and Pervez Ahmed Co. In the futures market, 314 companies recorded trading, 91 of which increased, 220 decreased and 3 remained unchanged.