KARACHI: Contrary to expectations of a broad-based rally following the successful bidding of the national flag carrier, the Pakistan Stock Exchange (PSX) on Wednesday failed to break its losing streak for a third consecutive session as investors continued to trim positions amid persistent volatility.
According to Topline Securities Ltd, the benchmark KSE-100 index closed at 170,830.22 points, down 243.51 points, as cautious sentiment overshadowed selective buying in index-heavy stocks.
PIA Holding Company Ltd slid close to its lower cap after investors realised that the listed Pakistan International Airlines Corporation (PIAA) would not retain any stake in the airline after privatisation. Under the transaction structure, the winning consortium may exercise a call option to acquire an additional 25pc stake offered by the government within three months, potentially eliminating any residual holding.
On the positive side, Pakistan Telecommunication Company Ltd, Fauji Fertiliser Company, Oil and Gas Development Company, Pakistan Petroleum Ltd and Bank of Punjab collectively added around 375 points to the index. However, losses in Lucky Cement, Engro Holdings and Kohat Cement erased about 430 points, more than offsetting the gains.
Market participation improved, with traded volumes rising 24.82pc to 811 million shares, while traded value increased 5.44pc to Rs29bn. Pakistan International Bulk Terminal led the volume chart, with over 62.1 million shares changing hands.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed another range-bound session. “Market sentiment remained weak and directionless,” he noted, adding that the index touched an intraday high of 171,587 points, up 514 points, before falling to a low of 170,641, down 433 points.
On the corporate front, Pakistan completed its first major privatisation in nearly two decades with the sale of a 75pc stake in PIAA for Rs135bn ($480m) to an Arif Habib-led consortium.
The transaction exceeded market expectations and underscored confidence in the airline’s turnaround prospects.
Looking ahead, analysts expect some improvement in sentiment in the final session of the week. However, the 170,000-point level remains a critical support; a decisive break below it could trigger a fresh phase of consolidation.
Published in Dawn, December 25th, 2025
