PSX in September

Mettis Global reported that the benchmark KSE-100 finished September at 169,969 points, down 7,006 points or 3.96% over the month. Geopolitical uncertainty, volatile oil prices and a heavy sell-off in banking shares pushed the index to its sharpest monthly fall since March. It had opened the month near its August close of 176,976 and now sits back below the 170,000 level.

Commercial Banks drove the decline, shedding 2,835 points and accounting for roughly 40% of the monthly fall. United Bank Limited alone erased 922 points, while National Bank of Pakistan, Meezan Bank, Bank Al Habib, HBL and MCB Bank also weighed on the index, with 11 of the 13 index banks ending lower. Outside banking, Fauji Fertilizer, Hub Power, Oil & Gas Development Company and Lucky Cement were among the heaviest drags.

Market capitalisation contracted 4.31% to Rs4.780 trillion during the month, and foreign investors were net sellers for a second straight month, with net outflows of $17.70 million (Rs4.90 billion). Local investors absorbed that selling, while PSX recorded 25,281 new investors in September, lifting the total investor base to 656,218. The month closed with the KSE-100 still 2.70% higher year on year, and the Monetary Policy Committee meets on 26 October.