KARACHI: The Pakistan Stock Exchange (PSX) saw significant volatility on Thursday, with the benchmark KSE-100 index briefly surging above 165,000 before closing lower at 164,444.72, down 1,241.66 points or 0.75 per cent.

The session began on a strong note, with the index gaining as much as 1,178 points in early trading. However, the initial optimism was short-lived as profit-taking led to a sharp market reversal.

The pullback was primarily attributed to institutional portfolio rebalancing and profit-taking after a historic rally in recent weeks. Losses were concentrated in stocks such as Engro Corporation, Systems Ltd, Fauji Fertiliser, Bank Al-Habib, and Engro Fertiliser, which together contributed 658 points to the index’s decline. Despite the overall downturn, gains in stocks like Habib Metropolitan Bank, United Bank, Hub Power, and Pakistan Petroleum provided some relief, adding 231 points.

Despite the decline, trading activity reached new highs. The PSX recorded its highest-ever daily trading volume of 3.08 billion shares, with a total traded value of Rs50.6bn. K-Electric led the volume charts, with 1.02 billion shares traded, reflecting strong interest from both retail and institutional investors, even amid market volatility.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that a tug-of-war between bullish and bearish forces marked the session. The early gains were driven by optimism following a ceasefire agreement between Pakistan and Afghanistan, which eased some geopolitical concerns. However, sentiment quickly turned negative in the last hour, as profit-taking and sector-specific selling took their toll.The PSX closed the day just below the 165,000-point mark, signalling a cautious tone heading into Friday’s session. Market participants are expected to focus on a range-bound movement, with the index likely concluding the week within the consolidation range of 165,000-170,000.

Published in Dawn, October 17th, 2025