The Pakistan Stock Exchange (PSX) started the week on a turbulent note, with the benchmark KSE-100 Index losing more than 600 points amid heavy selling pressure.
The session opened positively, briefly lifting the index to 150,079.75. However, profit-taking soon dominated trading, pulling the index to a low of 148,757.13 before closing at 148,815.30 – a drop of 677.75 points or 0.45%.
Market observers linked the volatility to the rollover week, a period when traders close existing futures contracts and open new ones. Analysts noted that nearly Rs77 billion in outstanding futures were due for rollover, adding to investor caution.
Major sectors, including automobile assemblers, commercial banks, oil and gas exploration firms and oil marketing companies, were under pressure. Heavily weighted stocks such as HUBO, MARI, OGDC, POL, PPL, SNGPL, SSGC and WAFI ended in negative territory.
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The downturn came after a strong previous week when the KSE-100 index surged by 3,001 points to settle at 149,493, driven by solid earnings and active participation.
Globally, Asian markets moved higher on Monday, with investors encouraged by expectations of US interest rate cuts. The MSCI Asia-Pacific index outside Japan gained 1.1%, while Japan’s Nikkei rose 0.6% and South Korea’s index added 0.7%. Australian shares also edged up.
US Federal Reserve Chair Jerome Powell’s recent shift towards a softer policy stance has increased speculation of a rate cut in September. Futures suggest an 84% chance of a quarter-point reduction, with up to 100 basis points of easing expected by mid-2026.
Meanwhile, the Pakistani rupee strengthened slightly, closing at 281.87 against the US dollar, its twelfth consecutive gain.