The Pakistan Stock Exchange (PSX) experienced another difficult trading day as the benchmark KSE-100 Index fell for the fourth consecutive session on Thursday, reflecting heightened investor anxiety amid economic and market uncertainties. The index declined by 736 points, closing at 164,531 points compared to 165,267 a day earlier. This marks a cumulative loss of 4,459 points since the start of the week, with the index slipping from 168,990 on October 2, 2025.
Earlier in the week, the KSE-100 index had flirted with the 170,000-point level during intraday trading, raising hopes for a strong performance. However, the optimism faded as a wave of selling pressure weighed heavily on market sentiment. Despite an improved GDP growth report and a positive review meeting with the International Monetary Fund (IMF), traders showed little enthusiasm.
Analysts attribute the recent downtrend to aggressive selling by both local institutions and foreign investors. According to Topline Securities Limited, the session opened on a positive note, with the index gaining up to 1,463 points in early trade, driven by market optimism following the IMF’s sharing of the draft Memorandum of Economic and Financial Policies (MEFP) with the Ministry of Finance.
Confidence rose further after Muhammad Aurangzeb, Pakistan’s Finance Minister, stated that all IMF targets had been met and that a staff-level agreement was expected soon after the MEFP signing. This initial boost, however, proved short-lived. By midday, heavy selling reversed early gains, dragging the index down to an intraday low of 959 points. The market eventually settled at 164,530 points, recording a decline of 735 points or 0.45%.
Major drags on the index included Habib Bank Limited (HBL), United Bank Limited (UBL), National Bank of Pakistan (NBP), Systems Limited (SYS), and Bank Alfalah Limited (BAFL), collectively eroding 639 points. Meanwhile, selective buying in MCB Bank Limited, Lucky Cement Limited, and Engro Corporation provided partial support, adding back around 317 points.
Market activity remained relatively strong, with 1.56 billion shares traded. However, the traded value dipped to PKR 50.4 billion, indicating cautious positioning by investors. Pakistan Telecommunication Company Limited (PTC) gained traction, with 119 million shares traded in the green after a positive valuation update. K-Electric (KEL) led the volume chart, with 278 million shares changing hands.
Market observers believe the ongoing correction is being driven by uncertainty rather than fundamental weakness. Global market trends, macroeconomic signals, and the timing of the IMF agreement are expected to shape the next movement. For now, traders are closely monitoring developments at home and abroad to assess whether the index can stabilise after a sharp four-day decline.
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