KARACHI: Investors took a cautious approach on Monday, with the Pakistan Stock Exchange (PSX) ending lower as concerns about the upcoming review of Pakistan’s economic performance by the International Monetary Fund (IMF) weighed on sentiment. The IMF mission is due on Sept 25.
The benchmark index started the rollover week on a volatile note, swinging between gains and losses. At one point, the index surged by 812 points, only to slip by 791 points, eventually closing at 157,554, down 482 points or 0.31pc. Profit-taking towards the session’s close contributed to the decline, as investors opted for caution ahead of the IMF review.
Market conditions were also impacted by a rise in the Margin Trading System (MTS) rate, which increased to 17.10, signalling tighter conditions for leveraged investors. As a result, volatility is expected to persist throughout the rollover week, with trading activity likely to remain unpredictable.
On the sectoral front, gains in stocks such as PSO, Hub Power, Oil and Gas Development Company, and GlaxoSmithKline added 408 points to the index. However, losses in key stocks like United Bank, Engro Holdings, Meezan Bank, Fauji Fertiliser, and Lucky Cement offset these gains, dragging the index down by 660 points.
Market participation remained subdued compared to the previous session, with trading volumes falling by 18.64pc to 1.664 billion shares. The total traded value also dropped by 12.08pc to Rs60.8bn. K-Electric topped the volume chart, with 236 million shares changing hands.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the PSX began the rollover week with a weak tone. The index moved in a zigzag pattern, reflecting investor caution amid the rollover of September futures contracts.
In other news, Fitch placed 25 sovereigns, including Pakistan, under Criteria Observation (UCO) following a revamp of its rating methodology. Meanwhile, the Federal Board of Revenue (FBR) chairman ruled out the possibility of a mini-budget, confirming that no such proposal is being considered.
Published in Dawn, September 23rd, 2025
