KARACHI: Pakistan’s stock market retreated on Monday after a volatile session, with investors opting to book profits ahead of the State Bank of Pakistan (SBP) monetary policy decision following a strong rally last week.
Read More: SBP holds key rate at 10.5%, defying market expectations
The benchmark KSE-100 index opened on a positive note and briefly crossed the 191,000 level in early trade amid optimism over a potential interest rate cut. However, aggressive selling in the latter half of the session erased gains, dragging the index into negative territory. The index closed at 188,587 points, down 579 points, or 0.31 per cent.
According to Topline Securities Ltd, the market experienced sharp swings throughout the session. The index touched an intraday high of 1,865 points before sliding to a low of 898 points as investors locked in profits. Caution prevailed ahead of the SBP’s Monetary Policy Committee meeting, keeping sentiment subdued.
Market participants largely remained on the sidelines, awaiting clarity on the central bank’s policy stance. Later in the day, the SBP surprised the market by keeping the policy rate unchanged at 10.50 per cent, contrary to expectations of a cut to around 10 per cent. To support liquidity, the central bank reduced the average cash reserve requirement from 6 per cent to 5 per cent.
On the corporate front, Mari Energies announced its financial results for the first half of FY26, reporting earnings per share of Rs23.89, below market expectations due to higher operating and exploration expenses. The company also declared an interim dividend of Rs8.3 per share for the second quarter.
Sector-wise, Meezan Bank, Engro Holdings, Pioneer Cement, Fatima Fertiliser and Lucky Cement emerged as major laggards, collectively dragging the index lower. Gains in Sazgar Engineering Works, Systems Ltd, Millat Tractors, Javedan Cement and Fauji Fertiliser provided some support.
Read More: SBP holds key policy rate at 10.5 percent
Trading activity remained moderate, with volumes declining to 867 million shares and traded value recorded at Rs57.1 billion. Analysts expect near-term pressure to persist, with 185,000 points seen as a key support level.