The Pakistan Stock Exchange (PSX) closed lower on Monday despite Moody’s upgrade of Pakistan’s credit rating, as late-session profit-taking wiped out most of the market’s early gains.
Topline Securities said the benchmark KSE-100 index opened on a positive note and climbed 956 points to an intraday high of 178,122.88 amid strong buying interest. However, selling pressure emerged in the second half of the session, pulling the index down to an intraday low of 176,735.57, a decline of 430 points.
The index eventually settled at 176,966.69, down 199.84 points, or 0.11 per cent.
Oil and Gas Development Company, Pakistan Petroleum, Maple Leaf Cement Factory, DG Khan Cement and Fauji Cement Company were among the major gainers, collectively contributing around 391 points to the index.
On the other hand, Engro Holdings, Meezan Bank, Service Industries and Systems Ltd emerged as major laggards, collectively weighing down the index by around 388 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market remained slightly negative despite Moody’s decision to upgrade Pakistan’s credit rating to B3 from Caa1 while maintaining a stable outlook.
Market sentiment was also influenced by expectations of higher inflation, with headline inflation projected to rise to 11.1 per cent year-on-year in August, compared with 3pc recorded in the same month last year.
Investor participation remained strong, with trading volume increasing 35.45pc to 933.5 million shares, while total turnover rose 23.67pc to Rs44bn. Cnergyico PK topped the volume chart with 266 million shares changing hands.
Analysts expect the market to remain volatile and range-bound in the short term, identifying 175,000 as a key initial support level.
While improving macroeconomic indicators, including the credit rating upgrade, are expected to support market sentiment, rising inflation and geopolitical tensions could continue to limit gains.
