On Friday, the Pakistan Stock Exchange (PSX) continued its downward trend, with the benchmark KSE-100 Index closing at 116,052.68 points, marking a loss of 202.44 points (-0.17%) from the previous session. This decline was primarily driven by profit-taking activities and apprehensions regarding the country’s economic outlook.
The session began on a positive note, with the index gaining up to 482 points, bolstered by AGP Ltd’s earnings announcement during the pre-open session. However, the market could not maintain this momentum, succumbing to selling pressure as investors capitalized on recent gains.
Bank Al Habib, National Bank, AGP Ltd, Meezan Bank, Nishat Mills Ltd, and Maple Leaf Cement Factory Ltd collectively added 293 points to the index. On the other hand, Engro Holdings, Fauji Fertiliser, Systems Ltd., Mari Energies, Engro Fertiliser, and The Searle Company erased 521 points from the index.
Analysts attribute the bearish trend to several factors. Investors engaged in profit-booking near the close of the earnings season, leading to increased selling pressure. Projections indicating a potential spike in consumer price index-based inflation in the coming month have made investors cautious.
Disappointing earnings reports from major companies like Pakistan Petroleum and Oil and Gas Development Company have dampened market sentiment. Additionally, uncertainties surrounding corporate and provincial tax reforms, coupled with delays in International Monetary Fund (IMF) approvals for power sector relief and federal budget proposals for FY26, have further depressed investor confidence.
Despite the downturn, trading volumes remained robust. There was an 18.79% increase, with 472.07 million shares traded. The total traded value rose by 17.85% to Rs22.77 billion on a day-on-day basis.
The PSX has experienced significant fluctuations in recent months. After starting 2025 with a strong surge, the market has faced challenges due to economic uncertainties and external pressures. Investors are advised to monitor macroeconomic indicators and corporate earnings closely to navigate the current volatile environment.
