The stock market, which began the week with optimism, experienced a notable downturn on Monday. The KSE 100 index fell as investor concerns over IMF funding and rising political instability overshadowed earlier gains.
Ahsan Mehanti from Arif Habib Corporation attributed the market’s decline to global equity market weaknesses and domestic political turmoil. The uncertainty surrounding the IMF’s decision on a Rs2.8 trillion funding plan to address circular debt, combined with expectations of a cautious approach from the State Bank of Pakistan in its upcoming monetary policy meeting, contributed to the bearish trend.
Topline Securities Ltd highlighted that the day’s significant losses were driven by major declines in shares of Millat Tractors, Hub Power, United Bank, Habib Bank, and Meezan Bank, which together caused a 354-point drop in the index.
On the flip side, Haleon Pakistan (Rs41.13), Service Industries (Rs29.37), Hallmark Company (Rs24.31), Mari Petroleum (Rs16.85), and Shifa International (Rs12.12) saw the most considerable gains.
The KSE index fluctuated between a high of 79,214.28 and a low of 78,545.69 before closing at 78,615.00, reflecting a decrease of 282.72 points or 0.36% from the previous trading session.
Trading activity decreased notably, with trading volume falling by 33.90% to 491.12 million shares and total trading value down by 21.5% to Rs10.12 billion. Major contributors to trading volume included WorldCall Telecom (86.00 million shares), Kohinoor Spinning Mills (42.93 million shares), Pace Pak Ltd (37.26 million shares), Trust Modaraba (33.75 million shares), and Waves Home Appliances (32.95 million shares).
In terms of price drops, Pak Engineering (Rs39.02), Rafhan Maize (Rs48.12), Sazgar Engineering Works Ltd (Rs42.57), Sapphire Textile (Rs41.94), and Millat Tractors (Rs39.02) faced the steepest declines.
Foreign investors turned net sellers, disposing of shares valued at $1.75 million.