Pakistan Stock exchange faces pressure as stocks succumb to profit-taking on Thursday, with a sharp downturn across the board. The benchmark KSE-100 index fell by 778.41 points, or 0.65%, to close at 119,153.04. The market’s decline reflected investors’ concerns over economic uncertainty and the approaching federal budget.

Reaction to IMF tax concerns

Stock Exchange reacts to IMF tax concerns, Pre-budget speculation weighed heavily on investor sentiment. The International Monetary Fund’s (IMF) proposed tax measures aimed at the oil, fertiliser, and automobile sectors raised alarm. As traders braced for potential fiscal tightening, profit-taking overwhelmed early gains. The rupee’s depreciation further pressured market confidence. Consequently, the session ended deep in the red.

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According to Arif Habib Corp MD Ahsan Mehanti, “Stocks closed under pressure due to the uncertainty surrounding IMF-driven tax proposals for FY26. Key sectors such as oil and auto faced investor anxiety.” He also highlighted regional tensions, security fears, and currency instability as major contributors to the bearish trend.

Stock Exchange holds mixed corporate performance

Despite profit-taking pressure, some stocks posted gains. Systems Limited climbed 5.39%, while TPL REIT Fund-I and Air Link Communication added 6.23% and 2.68% respectively. Conversely, major players like Engro Holdings, Lucky Cement, and Pakistan Petroleum dragged the index down with losses exceeding 2.8%.

Among corporate announcements, Honda Atlas Cars reported a 16% year-on-year rise in MY25 earnings per share (EPS), reaching Rs18.97. The company declared an Rs8 dividend per share, beating market expectations. Its fourth-quarter EPS rose 23% year-on-year to Rs11.78.

The Stock Exchange trading activity declines

Trading activity slowed significantly. The total trading volume dropped to 589.8 million shares from the previous 667.7 million. Share value declined to Rs30.8 billion. Out of 466 traded companies, 195 closed higher, 229 fell, and 42 remained unchanged.

K-Electric led the volume chart with 42.8 million shares traded, closing at Rs4.71. Bank Makramah followed, rising by Rs0.34 to close at Rs3.77. Ghani Global Holdings added Rs1.12, ending at Rs16.71 with 27.6 million shares traded.

JS Global’s analyst, Mohammed Waqar Iqbal, noted that the index touched an intra-day high of 120,699 before retreating to a low of 119,062. Profit-taking at higher levels caused the downturn. The market closed at 119,153, down 778 points.

While improving macroeconomic indicators provide some optimism, caution prevails. Analysts expect continued volatility until the FY26 budget is announced. If the index stays above the 120k mark, it may signal underlying market strength. However, global oil prices, rupee fluctuations, and tax policy clarity will shape the Pakistan Stock Exchange’s near-term direction.

In the coming sessions of Pakistan Stock Exchange, investors will closely watch for clarity on IMF conditions, fiscal policies, and geopolitical developments. Strategic portfolio adjustments are expected as participants navigate the uncertain pre-budget landscape.

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