The Pakistan Stock Exchange (PSX) experienced a significant pullback on Thursday, as profit-taking overshadowed the earlier buying momentum. The benchmark KSE-100 Index dropped by nearly 1,900 points during the session, ultimately closing at 149,235.26, a decline of 1,355.74 points or 0.90%.
Sana Tawfik, Head of Research at Arif Habib Limited, attributed the drop to profit-taking following a recent rally. However, Tawfik noted that overall market sentiment remains positive, bolstered by corporate earnings reports and expectations of a resolution to the circular debt issue.
Earlier in the day, the index had reached an intraday high of 151,249.62 points, gaining 658.62 points, but selling pressure reversed the upward momentum, triggering further losses.
The selling wave was triggered by panic selling which gripped the market after the Supreme Court’s decision to grant bail to former Prime Minister Imran Khan in eight cases related to the May 9, 2023 riots. This decision heightened political uncertainty and disrupted the market’s four-day bullish streak.
By the afternoon session, the index was trading at 149,699.00 points, a decrease of 892.00 points or 0.59% from the previous close. Analysts warned that the political volatility could weigh on investor confidence in the short term, though long-term fundamentals remain strong.
