KARACHI:
The Pakistan Stock Exchange (PSX) experienced a choppy trading session on Thursday as the benchmark KSE-100 index retreated from record highs, driven by investor caution ahead of the upcoming federal budget and concerns over fiscal tightening.
Market sentiment was weighed down by anticipated conditions of a new International Monetary Fund (IMF) programme, including stricter enforcement of agricultural income tax and resistance to provincial energy subsidies. These developments, combined with proposed new taxes on banking and savings, possible hikes in petroleum levies, a depreciating rupee, and a 10% year-on-year (YoY) drop in May exports, spurred profit-taking.
Ahsan Mehanti, Managing Director at Arif Habib Corporation, noted that investor concerns centered on IMF-driven demands for stronger tax enforcement and the elimination of energy-related provincial subsidies. “Fears of higher taxes, rupee weakness, and falling exports collectively dampened sentiment,” he said.
The KSE-100 index closed at 121,641, losing 157.87 points or 0.13% from the previous session. According to Topline Securities, the index fluctuated within a wide range, reaching an intraday high of +483 points and a low of -281 points, with traders adopting a cautious stance ahead of the long Eid holidays after recent bullish momentum.
Among the most actively traded stocks by value were Unity Foods (Rs1.67 billion), Engro Holdings (Rs1.24 billion), K-Electric (Rs1.03 billion), Searle Company (Rs847 million), and TRG Pakistan (Rs785 million).
Arif Habib Limited observed that despite Thursday’s dip, the market’s overall weekly performance remained positive, having recently hit record highs. Top gainers included Engro Holdings (+3.24%), Pakgen Power (+10%), and Service Industries (+5.49%), while key laggards were Meezan Bank (-2.11%), Systems Ltd (-1.68%), and Fauji Fertilizer (-0.5%).
In broader developments, Prime Minister Shehbaz Sharif is set to visit Saudi Arabia on June 5-6 to discuss bilateral and regional matters with Crown Prince Mohammed bin Salman. Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) announced during a corporate briefing that its annual capital expenditure is projected to remain around Rs30 billion.
Analysts expect the 120,000 level to act as a post-Eid support base for the KSE-100 index, with upward potential if macroeconomic conditions remain stable.
KTrade Securities reported that despite market fluctuations, trading activity was robust with 854 million shares changing hands. Leading in volume were K-Electric (179 million shares), Unity Foods (62 million), and WorldCall Telecom (52 million).
Profit-taking was particularly noticeable in the banking, cement, and oil and gas sectors. KTrade also pointed out that investors are likely to remain cautious in the run-up to the federal budget announcement on June 10, 2025.
JS Global analyst Mubashir Anis Naviwala noted that the index initially surged to an intraday high of 122,281 but later reversed due to selling pressure. Significant activity was recorded in the oil & gas, fertiliser, power, and banking sectors.
Of the 478 companies traded, 217 closed higher, 208 ended lower, and 53 remained unchanged.
K-Electric led the volume chart, rising Rs0.42 to close at Rs5.83. Unity Foods gained Rs0.75 to finish at Rs26.89, while WorldCall Telecom added Rs0.05 to settle at Rs1.42.
Foreign investors were net sellers, offloading shares worth Rs271.6 million, according to data from the National Clearing Company.
