The Pakistan Stock Exchange (PSX) closed modestly higher on Monday as the benchmark KSE-100 index rose 172.77 points, or 0.12%, to close at 139,380.06. Despite briefly crossing the 140,000 mark during early trade, profit-taking in banking-sector blue chips pulled the index below the threshold by the close of the session.
Arif Habib Limited Deputy Head of Trading Ali Najib remarked that the PSX again attempted to pass the 140,000 mark but in vain as the KSE-100 index ended the day at 139,380 points.
He pointed out that the session resumed on a buoyant note and the index touched intra-day high at 140,149 (up 942 points, or 0.68%) in early hours. However, the buying spree proved short-lived as the market succumbed to selling headwinds and ultimately lost the 140,000 level to profit-taking.
Over the weekend, Foreign Minister Ishaq Dar stated that Pakistan and the US were “very close” to finalising a trade deal, possibly within days. However, the US side, following Dar’s meeting with Secretary of State Marco Rubio, did not confirm any timeline.
If the deal is finalised, it could boost exports, attract investment and improve market sentiment. It may also likely strengthen the rupee and investor confidence, though delays could dampen immediate economic impact and optimism, Najib said.
The stars of the day were Lucky Cement, Systems Limited, Fatima Fertiliser, Pakistan State Oil and Sazgar Engineering Works, which added 379 points. On the other hand, the index lost 384 points due to some selling in banking sector blue-chip stocks, namely UBL, Meezan Bank, Bank Alfalah, HBL and MCB Bank.
“This selling can be attributed to street expectations of a 50-basis-point cut in the upcoming monetary policy meeting, scheduled for July 30, the analyst said.
“The outlook is still intact as 137,000 will continue to act as strong support for the KSE-100. If breached, the index may be pushed towards 135k, where attractive valuations and anticipated monetary easing can trigger renewed buying interest,” Najib commented.
Overall trading volumes decreased to 589.3 million shares compared with Friday’s tally of 634.8 million. Traded value increased to Rs34.6 billion as compared to Rs24.6 billion in the previous session.
Overall, shares of 483 companies were traded. Of these, 251 stocks closed higher, 205 dropped and 27 remained unchanged. Aisha Steel Mills was the volume leading with trading in 51.8 million shares, gaining 42 paisa to close at Rs12.76.
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