The Pakistan Stock Exchange (PSX) witnessed a sharp correction on Thursday as profit-taking erased gains made earlier in the week, with the benchmark KSE-100 Index shedding 715.18 points, or 0.58%, to close at 122,046.46.
After a positive open that saw the index climb to an intraday high of 123,417.87 (+656.23 points), the market turned negative by mid-session. Persistent selling pressure in key sectors led the benchmark to fall as low as 122,142.42 before slightly recovering by the closing bell. The session’s trading range spanned 1,275.45 points, underscoring volatility.
The downturn followed two consecutive days of gains, including a 515-point rise on Wednesday and a record 6,079-point surge on Tuesday amid regional de-escalation and revived investor optimism.
The day’s decline was led by the commercial banking sector, which shaved off 433.46 points from the index. Heavyweights like BAHL (-116.30 pts), HBL (-88.30 pts), and ABL (-4.51%) dragged sentiment. The cement sector also saw significant losses, contributing -167.75 points, followed by technology, power, and fertiliser.
Conversely, investment companies, glass and ceramics, and food and personal care products posted gains. ENGROH (+124.68 pts), NATF (+8.07%), and PPL (+29.53 pts) were among the top contributors to the upside.
Of the 100 KSE-listed companies, 71 closed lower, 27 advanced, while two were either unchanged or untraded.
Total volume on the KSE-100 Index reached 244.24 million shares, while aggregate market volume rose to 758.54 million shares, up from 749.8 million in the previous session. Traded value also increased to Rs29.93 billion, up by nearly Rs2 billion.
The broader All-Share Index lost 336.34 points to close at 76,303.21, reflecting a 0.44% dip.
Analysts say the market’s pullback reflects investors locking in profits after the recent rally, while sector-specific concerns—particularly regarding monetary policy and fiscal tightening in the banking and industrial space—weighed on sentiment.
With the fiscal year-end approaching and expectations building around the next IMF programme, investors may remain cautious in the short term. However, foreign interest and strong volumes continue to support the broader outlook, with select scrips in focus for rotation trades.
