Pakistan Stock Exchange (PSX) experienced a notable downturn on Thursday, as the benchmark KSE-100 Index plunged 1,241 points in a single trading session amid aggressive profit-taking by investors. This sharp reversal came after a strong early rally, signaling a shift in investor sentiment following a period of record-breaking gains.
The benchmark index settled at 164,445 points, compared to the previous close of 165,686 points. According to a market report issued by Topline Securities Limited, the trading day opened on a strong footing, with the index climbing by as much as 1,178 points during the early hours. However, that momentum quickly faded as institutional investors opted to book profits, leading to a sudden and steep decline.
From its intraday high, the market fell by 1,424 points before closing with a loss of 0.75%. Analysts attributed this movement to portfolio rebalancing activities and calculated profit-taking at elevated price levels after an extended bullish rally. Market participants pointed out that this kind of correction is a natural part of a sustained upward cycle, as investors look to lock in gains.
The bulk of the downward pressure came from key heavyweight stocks. Major contributors to the decline included Engro Corporation, Systems Limited, Fauji Fertilizer Company Limited (FFC), Bank AL Habib Limited (BAHL), and Engro Fertilizers Limited (EFERT), collectively shaving 658 points off the index.
On the other hand, limited positive contributions were observed from Habib Metropolitan Bank Limited (HMB), United Bank Limited (UBL), Hub Power Company Limited (HUBC), Pakistan Petroleum Limited (PPL), and Pakistan Stock Exchange Limited (PSEL), which collectively added 231 points.
Despite the sharp drop, trading activity remained vibrant. The total traded volume soared to 1.39 billion shares, while market turnover reached Rs. 50.5 billion. K-Electric Limited (KEL) emerged as the session’s volume leader, with an impressive 1.02 billion shares changing hands.
Market analysts noted that this correction should be viewed in the broader context of an overheated market rather than a sign of a prolonged downturn. They expect investor focus to shift toward upcoming corporate earnings announcements, central bank monetary policy decisions, and global economic trends, all of which will play a crucial role in shaping near-term trading sentiment.
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