PSX retreats below 174,000 on profit-taking

The Pakistan Stock Exchange ended lower on Monday, with the benchmark KSE-100 closing at 173,636.08 after a decline of 1,692.74 points, or 0.97 per cent. Dawn reported that Middle East tensions and domestic political uncertainty dampened investor mood, triggering profit-taking after the weekend's modest gains. Topline Securities added that fresh US-Iran tensions and elevated oil prices heightened worries about inflation and macroeconomic stability.

Refinery stocks came under pressure after reports that the government has decided to fine refineries that have not executed upgrade pacts by October 1. United Bank, Oil and Gas Development Company, Pakistan Petroleum, MCB Bank and Fauji Fertiliser were the main drags, removing 811 points, while Pakistan Services, Askari Bank and Adamjee Insurance added around 117 points. Trading activity slowed, with volume down 22.31 per cent to 679.18 million shares and turnover falling 26.91 per cent to Rs23.6 billion.

Arif Habib Ltd noted that the 175,000 level gave way, with the index heading for July lows of 170,000. Pakistan Services gained after press reports pointed to an out-of-court deal in a dispute over hotel properties. Thatta Cement and Fauji Foundation are reportedly among the parties that signed a memorandum of understanding to end the matter. However, the company told the exchange it was unaware of the report's contents and that its shareholding cases remain sub judice.