Karachi, February 7, 2025 – The Pakistan Stock Exchange (PSX) experienced a turbulent session on Thursday, as institutional selling led to a sharp decline in the market, eroding investor confidence. The benchmark KSE-100 Index closed in the deep red, with a loss of 1,634.22 points, or 1.46%, settling at 110,301.16 points. Despite reaching an intraday high of 112,234.15 points, the market failed to sustain the upward momentum and dropped to an intraday low of 109,405.54 points, as institutional selling dominated the trading session.
Trading volumes on the ready counter saw a significant rise, reaching 598.930 million shares compared to 436.325 million shares traded during the previous session. The daily traded value also increased, standing at Rs 25.629 billion, up from Rs 23.225 billion in the prior session. The increase in volumes highlighted the heightened market activity, with investors reacting to the growing uncertainty and pressure from institutional selling.
The broader market followed a similar trend. The BRIndex100, which tracks the performance of 100 leading companies, decreased by 180.15 points or 1.53%, closing at 11,569.53 points. BRIndex30, which focuses on the top 30 companies, dropped by 574.56 points or 1.66%, closing at 34,034.11 points. Total trading volumes for BRIndex30 amounted to 367.970 million shares.
Foreign investors also contributed to the downward pressure, being net sellers of shares worth $811,531. This selling trend reflects concerns over domestic and global uncertainties, particularly the political landscape in Pakistan and global trade tensions. The market capitalization of the PSX fell by Rs 173 billion, bringing the total market cap to Rs 13.654 trillion. Out of 435 active scrips, 286 closed in the negative, while 101 ended in the positive, and 48 stocks remained unchanged.
Silk Bank emerged as the volume leader with 119.523 million shares traded, closing at Rs 1.19, up by Rs 0.16. Other notable volume leaders included WorldCall Telecom, which saw a loss of Rs 0.06, closing at Rs 1.52 with 80.384 million shares traded. Bank Makramah also saw strong activity, gaining Rs 0.39 to close at Rs 4.15 with 64.937 million shares.
Nestle Pakistan and Haleon Pakistan were among the top gainers, with the former rising by Rs 51.11 to close at Rs 7,440.36 and the latter gaining Rs 30.39 to close at Rs 847.78. In contrast, Unilever Pakistan Foods and Sazgar Engineering Works were the top losers, declining by Rs 83.70 and Rs 46.60, respectively, to close at Rs 22,315.50 and Rs 1,094.36.
Market analysts pointed out that the KSE-100 Index endured a volatile session, falling to an intraday low of 2,529 points before recovering to close at 110,301. The negative sentiment was attributed to continued institutional selling, which has plagued the market for the past week. Major stocks such as Engro Corp (ENGRO), Fauji Fertilizer Company (FFC), Mari Petroleum (MARI), Systems Limited (SYS), and Pakistan Petroleum Limited (PPL) were among the primary contributors to the losses, accounting for a combined 675 points drop.
Ali Najib, an analyst at Insight Securities, referred to Thursday’s market performance as a “bloodbath,” noting that the KSE-100 index lost over 2,500 points at one point during the session. However, a partial recovery occurred, thanks to value hunters who stepped in to capitalize on lower prices. The day ended with a 1,634-point decline, showing a recovery of almost 896 points from the day’s low.
Several factors contributed to the heightened selling pressure, including profit-taking by institutional investors, concerns about the political situation in Pakistan, global trade uncertainties, and worries over the International Monetary Fund (IMF) talks related to the country’s revenue shortfall. Furthermore, many investors are shifting their funds from the equity market to the real estate sector, where property prices have been on the rise in certain localities since the beginning of 2025. Fertilizer, energy, and technology sectors saw significant profit-taking, with stocks like ENGRO, FFC, MARI, SYS, and PPL being particularly affected.
In conclusion, the Pakistan Stock Exchange’s performance on Thursday underscores the challenges facing the market, with institutional selling continuing to weigh on investor sentiment. While some recovery was seen during the session, the broader outlook remains uncertain, influenced by both domestic and international factors. Investors will likely remain cautious in the short term as the market navigates these turbulent conditions.