KARACHI: The Pakis­tan Stock Exchange (PSX) closed at a record high on Wednesday, settling above 165,500 points despite significant volatility. The benchmark index reached a new intraday high of 166,522 before experiencing a sharp fluctuation.

Following a strong rally, the market experienced heavy selling pressure, causing the index to decline by as much as 1,338 points. However, the market ended with a modest gain of 146 points, or 0.09 per cent, marking its fifth consecutive record-setting session.

According to Topline Securities, the day saw a tug-of-war between bulls and bears, with the index briefly surging 1,029 points before the late sell-off. Sector-wise, Mari Energies, Meezan Bank, Fatima Fertiliser, and Bank of Punjab contributed a combined 694 points to the index, while Engro Holdings, Hub Power, Habib Bank, Pakistan Petroleum, and Bank Al-Habib collectively pulled it down by 481 points.

Market participation increased compared to the previous session, with trading volumes rising 21.42pc to 1.633 billion shares. However, the traded value declined 9.26pc to Rs69.5bn. K-Electric led the volume charts, with 299 million shares exchanged.

Despite the positive clo­­se, market sentiment rem­ains cautious. Investors are closely watching economic developments and institutional flows, which could steer market direction in the coming sessions. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the session as turbulent, with the index swinging between gains and losses before eventually settling at 165,640.34, marking a historic closing.

On the macroeconomic front, inflation in September increased to 5.61pc year-on-year, primarily driven by rising food prices caused by monsoon rains and floods that disrupted supply chains. This inflation spike is expected to add further uncertainty to the market, which is already navigating the ongoing earnings season and broader economic challenges.

With investor sentiment still jittery, the market’s next moves will likely depend on further economic indicators and institutional investment flows.

Published in Dawn, October 2nd, 2025