KARACHI: The Pakistan Stock Exchange (PSX) saw continued selling pressure on Friday, with the benchmark KSE 100 index falling below the 164,000-point mark.

This decline was driven by ongoing profit-taking amid concerns over economic and political instability, despite the recent staff-level agreement with the International Monetary Fund (IMF).

Topline Securities reported that the index spent most of the session in negative territory, falling by 638.50 points, or 0.39 per cent, to close at 163,806.22. The most significant contributors to the decline were Mari Petroleum, United Bank, Habib Bank, Pakistan Oilfields, and Engro Corporation, which collectively accounted for a 681-point drop.

In corporate news, Maple Leaf Cement reported a 25pc quarter-on-quarter decline in its earnings per share to Rs2.6 for the first quarter of FY26.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market remained directionless for much of the day, with the index fluctuating between gains and losses. Investor sentiment was cautious as many chose to square off positions ahead of the weekend.

On the macroeconomic front, the Sensitive Price Index (SPI) for the week ending Oct 16 rose by 4.57pc year-on-year and 0.49pc week-on-week, underscoring ongoing inflationary pressures.

A survey by Arif Habib Ltd ahead of the upcoming Monetary Policy Committee meeting on Oct 27 showed that 87.5pc of market participants expect the State Bank of Pakistan (SBP) to maintain its policy rate, while 12.5pc anticipate a 50-basis-point cut.

Market participation was weaker, with trading volume declining by 35.72pc to 1.98 billion shares, while the traded value fell 26.9pc to Rs36.9 billion. WorldCall Telecom led the volume charts with 891.3 million shares.As the PSX wrapped up the week below the 165,000-170,000-point consolidation zone, its cautious tone is expected to persist in the coming sessions, with investors awaiting clearer economic indicators and monetary policy decisions before making new investment decisions.

Published in Dawn, October 18th, 2025