The Pakistan Stock Exchange (PSX) opened Thursday’s session lower as investors opted to take profits following a prolonged market rally. Trading remained cautious due to mixed corporate earnings and the absence of new positive catalysts.
The benchmark KSE-100 index showed significant volatility. It initially climbed to an intraday high of 166,720.42 points. However, it could not hold these gains. The index later dropped to a low of 164,499.55 points. This represented a sharp decline of 1.23% from the previous day’s close. This swing highlighted the uncertain sentiment among traders.
The market lacks new triggers as most good news is priced in. Some company results have fallen short of expectations. This acts as a “reality check” following an emotionally driven rally.
The trading session occurred against a backdrop of key economic comments. Finance Minister Muhammad Aurangzeb acknowledged that some multinational companies have left Pakistan. However, he stressed that new investors are entering the market.
Read: IMF Approves Rs150 Billion Tax Target Reduction for Pakistan
He also confirmed that Pakistan has cleared a $4 billion backlog in dividend payments. This has improved investor confidence.
Meanwhile, the International Monetary Fund (IMF) offered a mixed outlook. It revised Pakistan’s growth forecast upward to 3.6% for the next fiscal year. This is a positive sign.
However, the IMF also issued a warning. It noted that recent flooding could negatively impact growth and inflation. It also forecasted that inflation may rise again in 2026 as electricity subsidies are phased out.
