Pakistan stocks volatile amid inflation uptick, KSE-100 down 0.68pc

KARACHI: The Pakistan Stock Exchange remained volatile on Monday, hitting an intraday high of 120,590.77 and a low of 118,672.84, amid the latest data showing that the CPI had clocked 3.5 per cent in May. As a result, the KSE-100 Index closed at 118,877.80, down 813.29 points or 0.68 per cent.

During the session, the market gain over 899.68 points before the benchmark index ultimately entered the negative territory.

Meanwhile, resurging inflation has negatively impacted the investors’ confidence.

“Inflation in Pakistan inches up to 3.5 per cent in May 2025, potentially routing the investors’ confidence into negative lane,” Al Habib Capital stated.

Read more: Pakistan inflation in May is up 3.5pc year-on-year

On a positive note, the government has secured a historic Rs1.275tr loan deal from banks for circular debt settlement of Pakistan’s energy sector, it added.

However, it didn’t boost investors’ confidence at least in Monday’s session.

“The benchmark index closed on a negative note, with the index plunging near the end of the session. Volatility persisted, while lacklustre volumes reflected a cautious tone as investors adopted a wait and see approach ahead of the FY26 budget,” Ismail Iqbal Securities stated.

“The market exhibited volatility today, with the index fluctuating within large band, primarily influenced by global market trends. Local equities faced selling pressure amid uncertainty surrounding the upcoming budget and the government’s proposed 2–3 per cent hike in the tax rate on passive income,” Topline Securities Ltd stated.

THE PLAYERS

Meanwhile, upward momentum in the benchmark KSE-100 Index was supported by notable gains in PKGP, NATF, MEBL, NBP, and BAHL, which collectively added 201 points to the index. Conversely, losses in SYS, ENGROH, and PPL dragged the index down by a combined 341 points.

On the other hand, market participation remained strong, with the overall trading volume reaching 496 million shares and a traded value of PKR 23.4 billion. DCL led the volume board, with 40 million shares changing hands.