KARACHI: The Pakistan Stock Exchange (PSX) reversed its upward trajectory on Thursday after two days of gains, as investors opted for profit-taking at elevated levels, dragging the benchmark index into the red.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the KSE-100 Index had surged nearly 6,594 points, or 5.7pc, in the previous two sessions following the Iran-Israel ceasefire. “Today’s decline was largely due to profit-taking,” he noted. The index settled at 122,046.76, down 715 points or 0.58pc.
The decline was also influenced by the fiscal year-end approaching on June 30. Institutional investors who follow settlement-date accounting moved to square their positions before FY25, prompting selling pressure during the session.
Major drag came from Bank Al Habib, Lucky Cement, Habib Bank, Pakistan Services Ltd and Systems Ltd, which collectively shaved off 406 points from the index. However, some stocks attracted renewed buying interest—Engro Holdings, National Foods, Pakistan Petroleum, Ghani Glass Ltd, and Tariq Glass Industries Ltd together added 257 points.
Despite the day’s decline, analysts said the index’s resilience above the 122,000 mark reflects strong underlying momentum. A sustained hold above 120,000 could pave the way for a fresh rally towards 130,000, supported by improving macroeconomic indicators and investor sentiment.
Ahsan Mehanti of Arif Habib Corporation attributed the pressure to economic uncertainty surrounding Pak-US reciprocal tariff negotiations. Pakistan risks a 29pc tariff on its exports to the US if talks fail.
“Political noise, uncertainty over federal cabinet approval of the revised Finance Bill 2025-26, and concerns over FBR’s revenue targets and its expanded powers under the budget also contributed to bearish sentiment,” he said.
Topline Securities noted that after two consecutive sessions of robust gains, the market faced profit-taking, driven by fiscal year-end adjustments and short-term portfolio rebalancing.
The KSE-100 Index experienced significant volatility—rising as much as 656 points intraday before falling to a low of 715 points, ultimately settling with a cautious tone.
Market participation saw a modest uptick, with trading volume rising 1.16pc to 758.54 million shares, while traded value climbed 6.79pc to Rs29.93bn. Pakistan International Bulk Container Terminal led the volumes, with 37.53 million shares changing hands.
Published in Dawn, June 27th, 2025
