The Pakistan Stock Exchange (PSX) closed lower on Friday as investors engaged in profit-taking following a record-setting rally the previous day. The benchmark KSE-100 Index declined by 312.77 points, or 0.26%, settling at 119,649.14 after surging to an all-time high of 119,961.91 on Thursday.
Friday’s trading session was marked by notable volatility, with the KSE-100 Index reaching an intraday peak of 120,506.17 before dropping to a low of 119,541.15. This 965-point trading range reflected cautious investor behavior as participants sought to capitalize on gains from the prior session’s momentum.
The previous day’s historic rise, which saw the index gain over 1,400 points, was largely driven by a wave of optimism fueled by strong economic indicators and anticipation surrounding the upcoming national budget. This positive sentiment was underpinned by key developments such as the International Monetary Fund’s approval of a $1.3 billion Resilience and Sustainability Facility, the launch of Pakistan’s first sovereign domestic green sukuk bond, and a notable reduction in the country’s debt-to-GDP ratio to 65%.
These milestones have reinforced confidence among investors, encouraging sustained market activity and driving the KSE-100 Index’s impressive 59.68% increase over the past year. Year-to-date, the index has climbed 3.93%, signaling growing faith in Pakistan’s economic reforms and long-term growth prospects.
Despite Friday’s slight pullback, analysts remain upbeat about the PSX’s outlook. They expect the exchange to maintain its upward trajectory, supported by ongoing fiscal reforms, strengthened economic fundamentals, and increasing foreign investment inflows.
Market participants view the recent profit-taking as a healthy correction rather than a sign of waning confidence. Such fluctuations are typical following rapid gains and serve to balance market momentum.
Investors continue to monitor the government’s upcoming budget announcement closely, as its policy measures will likely influence market sentiment and investment flows in the near term.
Overall, the PSX remains a focal point for both domestic and international investors attracted by Pakistan’s improving economic indicators and strategic reforms aimed at bolstering financial stability and growth.