PSX Drops 380 Points Amid Profit-Taking in the Market

The Pakistan Stock Exchange (PSX) faced a sharp dip on Monday as the benchmark KSE-100 Index fell nearly 400 points. Market volatility and investor profit-taking ahead of end-July contract expiries drove the decline, putting an end to the recent bullish streak.

Index Slides After Record High

After reaching a historic peak last week, the KSE-100 Index closed at 138,217.58, down 379.78 points or 0.27%. The day’s session remained range-bound, fluctuating between an intraday high of 139,201 and a low of 138,150.

According to a post-market report by Topline Securities, “Investors opted for profit-taking as the futures contracts near their expiry, limiting any upward momentum.”

Key Players Behind the Fall

Heavyweights such as FFC, UBL, OGDC, SYS, and HUBC put pressure on the index, collectively dragging it down by 438 points. However, support came from HBL, EFERT, and PABC, which together added 152 points, helping to cushion the fall to some extent.

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Despite Monday’s loss, the market recently experienced one of its strongest performances. Last week, the KSE-100 had surged by over 4,297 points, closing at an all-time high of 138,597, with a weekly gain of 3.2%. That performance marked the highest weekly gain in the PSX’s history.

Investors Book Gains

Market sentiment on Monday remained cautious as investors looked to book gains from last week’s rally. The mix of strong macroeconomic indicators and optimism over upcoming corporate earnings had fueled the earlier rise.

However, with the futures expiry nearing, traders appeared to shift toward securing profits rather than taking new positions. Analysts also observed that while investor confidence remains generally upbeat, external factors and short-term pressures have begun to affect sentiment.

Global Cues and Political Context

International markets showed limited movement on Monday. In Asia, shares and the Japanese yen remained stable following weekend elections in Japan, which saw the ruling coalition lose control of the upper house. While the results weakened Prime Minister Shigeru Ishiba’s position, markets had largely priced in the political impact.

Wall Street futures, meanwhile, showed caution as investors waited for tech companies to kick off their earnings season. Hopes for progress in US-EU trade talks and a possible meeting between US President Donald Trump and Chinese President Xi Jinping added a layer of speculation, though no immediate breakthrough was expected.

Currency and Market Activity

The Pakistani rupee weakened slightly against the US dollar, closing at Rs284.95, a minor depreciation of Re0.08 or 0.03% in the interbank market.

On the trading floor, the volume on the all-share index fell to 608.19 million shares, slightly lower than 609.44 million from the previous session. Meanwhile, the value of traded shares saw a sharp decline, dropping to Rs23.52 billion from Rs31.62 billion.

Among individual stocks, Prud Mod.1st led the volume charts with 58.74 million shares. It was followed by K-Electric Ltd with 53.17 million shares, and Pak Int. Bulk with 51.73 million shares.

A total of 479 companies were active during the session. Of these, 193 stocks gained, 245 lost value, while 41 remained unchanged.

What to Watch

With July contracts nearing expiry and recent gains still fresh, investors may continue to lock in profits during the coming sessions. Market watchers will keep a close eye on corporate earnings and any major global economic signals, which could determine the PSX’s next direction.