PTBP Web Desk
The Pakistan Stock Exchange (PSX) witnessed heavy selling pressure on Friday as investors opted for profit-taking after a strong rally earlier in the week. The benchmark KSE-100 Index dropped by nearly 1,300 points, marking the second consecutive day of declines and highlighting renewed uncertainty among investors.
Market sentiment turned negative throughout the trading session, with the index plunging to an intra-day low of 163,041.97 points. By the close, the KSE-100 settled at 163,304.13 points, recording a sharp loss of 1,286.28 points, or 0.78%.
This latest slide followed Thursday’s downturn, when persistent selling across major sectors pushed the index below the 165,000-point mark. On that day, the benchmark lost 1,962.87 points (1.18%), ending at 164,590.41 points.
According to analysts, investors have been capitalizing on earlier gains amid concerns about global market volatility and domestic economic challenges, particularly interest rate expectations and fiscal policy developments.
Following a strong performance earlier in the week driven by optimism surrounding Pakistan’s improving macroeconomic outlook and potential foreign inflows, investors turned to profit-taking. The shift suggests that traders are moving cautiously ahead of key economic decisions expected in the coming days.
Market watchers noted that while institutional investors locked in profits, retail investors appeared hesitant to make fresh entries amid concerns over exchange rate volatility, inflationary trends, and the upcoming monetary policy review by the State Bank of Pakistan (SBP).
A senior market analyst at Arif Habib Limited commented that the correction was “a healthy pullback” after a sustained rally, adding that the overall market outlook remains positive if global cues remain stable and foreign interest continues.
In contrast to Pakistan’s local market downturn, Asian shares rallied on Friday as Wall Street’s strong earnings and signs of improving US-China relations lifted global investor sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5% in early trading. Japan’s Nikkei index jumped 1.2% ahead of remarks by the new Japanese Prime Minister, who was expected to announce an economic stimulus package.
In the United States, optimism increased after Intel’s quarterly results beat market expectations, adding to a series of strong corporate earnings. The mood was further lifted by the White House confirmation that President Donald Trump will meet Chinese President Xi Jinping next week during his Asia tour, as a crucial tariff deadline approaches.
Oil prices, meanwhile, eased slightly following new US sanctions on Russian suppliers, suggesting potential stabilization in the global energy market.
On the currency front, the Pakistani rupee recorded a slight gain against the US dollar in the inter-bank market on Friday. The local unit closed at 281.02, appreciating by Re0.01 from the previous day’s close, according to data released by the State Bank of Pakistan (SBP).
Currency dealers attributed the minor improvement to reduced import payments and steady remittance inflows, though they warned that the rupee could face renewed pressure if the current account deficit widens or global oil prices rise again.
Analysts expect the Pakistan Stock Exchange to remain volatile in the near term, driven by both local and international factors. The upcoming Federal Reserve policy meeting and Pakistan’s domestic fiscal policy measures will play key roles in shaping market trends.
Furthermore, while investor confidence has been supported by the government’s efforts to stabilize the economy and attract investment, concerns about political uncertainty, inflation, and external debt repayments continue to weigh on sentiment.
Experts suggest that the KSE-100 Index could find support around the 162,500-point level, with recovery expected if institutional buying resumes and global commodity markets stabilize.
For long-term investors, analysts from Topline Securities advise focusing on fundamentally strong sectors such as banking, energy, and fertilizers, which could benefit from stable interest rates and improved corporate earnings in the coming quarters.
