KARACHI: The Pakistan Stock Exchange (PSX) for the second straight session failed to maintain its early momentum as profit-taking in the later hours pushed the benchmark KSE-100 index below the 169,000-point mark on Thursday. Optimism fuelled by an IMF inflow and higher remittances, which tossed the index to an all-time high on Tuesday faded.

Topline Securities noted that the PSX experienced a round of measured profit booking as the index approached the key psychological barrier of 170,000. The market swung between an intraday high of 170,301.48, up 849 points, and a low of 168,548.46, down 903 points, before closing at 168,574.69. This marked a decline of 877.17 points, or 0.52 per cent, signalling a pause in the market’s recent rally.

Investor sentiment was, however, boosted by a significant development: Pakistan successfully completed a Rs659.6bn settlement of Power Holding Ltd (PHL) debts, marking the largest-ever transaction in the country’s debt capital markets. This historic deal is expected to bolster fiscal stability and enhance investor confidence.

Engro Holdings, Nishat Mills Ltd, Oil and Gas Development Company (OGDC), Kot Addu Power, and Adamjee Insurance collectively contributed 319 points to the index. However, this was offset by declines in Fauji Fertiliser, Lucky Cement, Habib Bank, and Pakistan Services, which together pulled the index down by 566 points.

Despite the market’s cautious tone, investor interest remained strong. Trading volume increased by 8.26pc to 1.28bn shares, while the traded value rose by 9.38pc to Rs55.1bn. Hum Network led the volume chart with 187.9 million shares changing hands.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, explained that the market opened with a strong bullish sentiment, briefly breaching the 170,000 mark. However, profit-taking took over following the conviction of a former intelligence chief in a high-profile military trial, sentencing him to 14 years.

OGDC announced it had received Rs41.8bn from Uch Power Ltd, settling outstanding receivables.

Published in Dawn, December 12th, 2025