The Pakistan Stock Exchange (PSX) experienced a range-bound trading session on Friday, with the benchmark KSE-100 Index losing nearly 300 points in the latter half of the trading day. As of 2:50 pm, the KSE-100 stood at 113,442.66 points, reflecting a decline of 296.49 points, or 0.26%.
Selling pressure was observed in several key sectors, including automobile assemblers, cement, commercial banks, oil marketing companies (OMCs), and power generation stocks. Several index-heavy stocks, such as Pakistan State Oil (PSO), Sui Southern Gas Company (SSGC), Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), MCB Bank Limited (MEBL), National Bank of Pakistan (NBP), and United Bank Limited (UBL), traded in the negative zone, contributing to the overall decline in the market.
Despite the loss in the KSE-100 Index, the market showed resilience earlier in the week. On Thursday, a buying spree had lifted the benchmark index by nearly 400 points, bringing it to a closing level of 113,739.16 points. This sharp rise had sparked hope for a positive momentum, but Friday’s session saw a reversal, as market sentiment soured and investors sought to lock in profits amidst ongoing uncertainty in the broader economic and political landscape.
In a notable development, it was announced that a mission from the International Monetary Fund (IMF) would be visiting Pakistan next week to discuss climate resilience funding. The IMF delegation is scheduled to arrive in Islamabad from February 24 to 28 to engage in a review and discussion of around $1 billion in climate financing for the country. Khurram Schehzad, an adviser to Pakistan’s finance minister, confirmed the visit to Reuters, marking an important step in Pakistan’s efforts to secure international support for climate-related initiatives.
This news had a mixed impact on market sentiment, with investors watching the developments closely, especially given the significance of securing external financing for Pakistan’s economy. The IMF mission is expected to play a key role in facilitating discussions around climate resilience, which is crucial for Pakistan’s sustainability goals in light of its vulnerability to climate change. However, the anticipation of these talks did not provide the much-needed boost to the stock market, as sectors dealing with day-to-day economic activities continued to struggle.
Internationally, Asian stock markets saw positive movement on Friday, reversing the negative trend set by Wall Street. The reversal came as the narrative of U.S. exceptionalism began to lose its shine, while Chinese stocks attracted renewed interest due to optimism surrounding artificial intelligence (AI) and a breakthrough in Chinese technology. The MSCI Asia-Pacific Index, excluding Japan, rose by 0.8%, and Hong Kong’s Hang Seng Index surged by 1.8%, with tech stocks leading the charge, climbing 2.5%.
China’s CSI300 blue-chip index gained 0.2%, while the CSI big data index saw a more significant rise of 2%. Chinese stocks, particularly in the tech sector, have seen strong gains recently, driven by advancements like DeepSeek’s AI breakthrough, which has reignited investor interest in the country’s technology capabilities. The Hang Seng Tech Index has surged 26% so far this year, while the S&P 500 in the U.S. is up just 4% during the same period, highlighting the contrasting performance between the two markets.
Meanwhile, gold remained near its record highs, poised to extend its gains for the eighth consecutive week. The precious metal’s strong performance is being fueled by safe-haven flows, driven by concerns over U.S. President Donald Trump’s tariff threats and ongoing geopolitical tensions, particularly the Russia-Ukraine conflict. Traders are closely monitoring these developments, and gold remains an attractive asset for those seeking stability amidst the global economic uncertainty.
As for the PSX, the range-bound trading observed on Friday reflects the cautious sentiment prevailing in the market. While some positive momentum was seen earlier in the week, the ongoing challenges facing Pakistan’s economy, along with uncertainty in global markets, have kept investors on edge. The outcome of the IMF mission and any subsequent announcements will likely play a crucial role in determining the direction of the market in the coming weeks. For now, traders remain focused on navigating the volatility, while closely monitoring both domestic and international economic developments.