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KARACHI: The Pakistan Stock Exchange (PSX) saw a significant decline on Friday, with the benchmark KSE-100 index dropping below the 155,000-point mark as bears overpowered bulls, ending a nine-session bullish streak on Thursday.
The drop was attributed to rising concerns over Pakistan’s economic outlook, exacerbated by recent flooding and uncertainty surrounding the upcoming review by the International Monetary Fund (IMF) for the release of the third tranche of $1 billion under the $7bn Extended Fund Facility (EFF). The IMF mission is scheduled to visit Pakistan on September 25.
The KSE-100 index closed down by 1,701.57 points, or 1.09 per cent, ending at 154,439.40. The session began with optimism but soon turned negative as investors opted to sell off their holdings. Key sectors, including banking, fertilisers, power, cement, and exploration, all saw significant losses.
Major stocks such as United Bank, Fauji Fertiliser, Engro Holdings, Hub Power, Lucky Cement, and Oil and Gas Development Company together contributed nearly 1,000 points to the decline.
Market turnover was subdued, with 984.9 million shares traded, valued at Rs39.8bn. First National Equities Ltd led the volume chart, with 61.9 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, stated that the market closed weak due to widespread selling across sectors. While short-term volatility is expected as investors engage in profit-taking and remain cautious, he noted that the 154,000-point level could act as a potential support for the market.
Topline Securities Ltd observed that the market correction was partly driven by rising leverage costs, particularly through the Margin Trading System (MTS) and Futures Market.
Analysts also pointed to the uncertainty surrounding the IMF review, which could further dampen investor sentiment in the near term. Pakistan’s economy faces significant challenges, including inflationary pressures, rising external debt, and limited foreign exchange reserves. These issues, combined with political instability and the effects of the devastating floods, have contributed to an increasingly uncertain economic environment, which has weighed heavily on investor confidence.
Published in Dawn, September 13th, 2025
