KARACHI – The Pakistan Stock Exchange (PSX) witnessed a sharp correction on Wednesday, ending its eight-session record-setting rally, as investors opted for profit-taking amid concerns over market sustainability.
The KSE-100 index shed 826.20 points, closing at 132,576.99, reflecting a 0.62% decline.
Market Movement and Key Losers
The benchmark index saw a volatile trading session, moving between an intraday high of 133,566 and a low of 132,326.
Leading the downturn were major blue-chip stocks, including:
- Fauji Fertiliser
- Engro Corporation
- Bank Al Habib
- Pakistan State Oil (PSO)
- Habib Bank Limited (HBL)
These stocks alone accounted for a combined 397-point drop in the index.
Why the Market Pulled Back
According to analysts at Topline Securities and Arif Habib Ltd., the correction was driven by:
- Profit-booking after an extended rally
- Foreign outflows due to global concerns, particularly over trade policy shifts in the U.S.
- Currency volatility and ongoing fiscal uncertainty regarding the FBR’s tax reforms
Trading Volumes Drop
- Shares traded: 905.7 million (down 24.9%)
- Total value: Rs 30.5 billion (down 27.4%)
The decline in volumes reflected a cautious tone among investors looking to reassess positions ahead of key corporate earnings.
Macro Support Still Strong
Despite the pullback, market fundamentals remain supportive:
- Remittances hit $3.2 billion in June, pushing FY25 inflows to $38.3 billion
- Stable foreign exchange inflows are expected to ease pressure on the rupee and improve investor confidence
What’s Next for PSX?
Analysts expect near-term support around the 130,000-point level, with stronger backing likely at 127,000. The upcoming earnings season could be a key driver for renewed investor interest.
While the rally has paused, the broader sentiment remains bullish, underpinned by improving economic indicators and robust foreign exchange inflows.
This story has been reported by PakTribune. All rights reserved.
