KARACHI — The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Thursday, with the benchmark KSE-100 Index swinging sharply during the day before closing in the red for the third straight session.
The index opened on a positive note and climbed to an intra-day high of 121,745.30, reflecting early investor optimism. However, this momentum was short-lived as renewed selling pressure — driven by regional tensions and global monetary cues — reversed gains. The index slumped to an intra-day low of 119,770.03 before eventually settling at 120,002.59, down 463.34 points or 0.38%.
Market participants attributed the choppy performance to heightened geopolitical uncertainty following a high-profile meeting between US President Donald Trump and Pakistan’s Chief of Army Staff Field Marshal Syed Asim Munir at the White House — notably held without accompanying Pakistani civilian officials.
This unprecedented solo military-level engagement is being interpreted in Islamabad as a diplomatic success for Pakistan, especially in contrast to an earlier meeting this month where an Indian delegation, led by civilian leadership, was hosted by US Vice President JD Vance. The comparison has stirred political debate and speculation over shifting regional alignments, adding to investor caution.
Simultaneously, global financial markets digested the US Federal Reserve’s decision on Wednesday to hold interest rates steady. While the Fed maintained its outlook for rate cuts later this year, it signalled a slower trajectory for easing, citing the inflationary impact of new tariffs announced by the Trump administration.
These mixed signals — both diplomatic and economic — prompted cautious trading at the PSX, as investors awaited further clarity on regional developments and upcoming budget-related measures that could affect corporate profitability and market direction.
The broader market saw selective activity, with volumes concentrated in index-heavy sectors. Analysts note that persistent foreign outflows and concerns over currency stability continue to weigh on investor confidence, even as valuations in certain sectors remain attractive on a forward-looking basis.
On Wednesday, the KSE-100 had shed over 1,500 points in a sharp sell-off, and Thursday’s close marked continued pressure, taking the cumulative two-day loss to nearly 2,000 points.
Market observers expect trading to remain range-bound in the coming sessions unless clarity emerges on political stability, fiscal consolidation, and external sector dynamics.
