KARACHI: The Pakis­tan Stock Exchange (PSX) on Thursday snapped a nine-session bullish run, as investors turned cautious amid rising inflation, concerns over economic fallout from flash floods, and expectations of a status quo in interest rates.

Disruption in supply chains is likely to push up inflation further and weigh on industrial activity, prompting profit-taking across the board.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX had “finally hit the pause button” after an electrifying rally of over 10,000 points — or 7 per cent — from the Aug 29 lows.

The session opened on a strong note, with the KSE-100 index hitting a new intraday all-time high of 157,817, up 796 points. However, the early optimism quickly gave way to profit-booking, dragging the index to an intraday low of 156,104, before closing near that level.

According to Topline Securities Ltd, the KSE-100 settled at 156,141, down 880 points or 0.56pc. The market remained volatile throughout the day, swinging between gains and losses as profit-taking dominated sentiment. Positive contributions came from Meezan Bank, Interloop Ltd, and Kohinoor Textile Mills, collectively adding 152 points. However, these were offset by heavy losses in Engro Corporation, Pakistan Petroleum Ltd, Mari Petroleum, Engro Fertilisers, and Fauji Fertiliser, which together erased 540 points from the benchmark.

Investor activity remained robust, with traded volume surging 28.47pc to 1.27bn shares. Traded value also rose 4.77pc to Rs50.2bn. Agha Steel Industries led the volume chart with 113m shares changing hands, reflecting sustained investor interest despite the day’s pullback.

On the macroeconomic front, Pakistan’s second review under the International Monetary Fund’s Extended Fund Facility (EFF) is scheduled between Sept 25 and Oct 8, with a $1bn tranche at stake.

The finance ministry remains optimistic, terming the review “critical” for unlocking external inflows, bolstering investor confidence, and supporting economic stability.

In parallel, the launch of Pakistan’s debut $250m Panda Bond (RMB equivalent) is expected to aid funding diversification and deepen financial integration with China. Looking ahead, analysts anticipate continued volatility, with likely consolidation in the 155,000–157,000 range.

Should selling pressure intensify, the 154,000 level is seen as a key technical support for the KSE-100 index.

Published in Dawn, September 12th, 2025