According to Topline Securities, market sentiment remained cautious due to the uncertainty surrounding the State Bank of Pakistan’s (SBP) monetary policy and concerns over circular debt.

Gains were driven by ENGROH, UBL, HBL, POL, and SRVI, which collectively added 504 points to the index.

However, losses in PPL, OGDC, and PSO dragged the market down by 317 points.

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Trading activity remained active, with 324 million shares changing hands, generating a turnover of Rs 20 billion.

POWER led the volume chart with 24 million shares traded.

Ahsan Mehanti of Arif Habib Corp noted that investor sentiment remained muted as the SBP maintained the policy rate at 12% and uncertainty loomed over Pakistan’s ongoing negotiations with the International Monetary Fund (IMF).

Reports of IMF opposition to circular debt resolution through commercial banks further dampened confidence.

“Foreign outflows, a weak rupee, and expectations of rising CPI inflation played a key role in the market’s bearish close,” Mehanti added.