KARACHI: The Pakistan Stock Exchange (PSX) continued its downward trajectory as the conclusion of the IMF’s economic review failed to deliver a staff-level agreement (SLA). The benchmark KSE-100 index recorded losses for the fourth consecutive session, closing below the 165,000-point mark amid persistent profit-taking.

According to Topline Securities, the session began on a positive note with the index climbing by 1,463 points, buoyed by improved investor sentiment. This optimism stemmed from reports that the IMF had shared a draft Memorandum of Economic and Financial Policies (MEFP) with the Ministry of Finance. Confidence was further boosted by Finance Minister Muhammad Aurangzeb’s statement that Pakistan had met all IMF targets, and a staff-level agreement was expected once the MEFP was signed.

However, the early gains were short-lived. Heavy selling by local institutions and foreign corporates quickly eroded the positive momentum, pushing the index down to an intraday low of 959 points. The KSE-100 index eventually settled at 164,530.81 points, a decline of 735.94 points or 0.45 per cent.

Notable decliners included Habib Bank, United Bank, National Bank, Systems Ltd, and Bank Alfalah, which collectively contributed 639 points to the index’s fall. In contrast, selective buying in MCB Bank, Lucky Cement, and Engro Holdings helped offset some losses, adding 317 points to the index.

Despite the overall decline, market participation remained strong. Trading volume increased by 23.19pc to 1.56 billion shares, though the traded value dropped by 17.34pc to Rs50.4bn.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the session was marked by significant volatility, with the benchmark index fluctuating between a low of 164,307 and a high of 166,730. The persistent selling pressure from local institutions and insurers weighed heavily on the market, leaving value investors hesitant as attempts at recovery failed to sustain.

The market has now broken out of its previous consolidation band of 165,000-170,000 points. The outcome of Friday’s session is crucial, as a recovery back into this range could restore confidence, while further declines may signal a deeper correction or a potential trend reversal.

Published in Dawn, October 10th, 2025