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KARACHI: After a mild recovery overnight following a three-session of continuous battering, the Pakistan Stock Exchange (PSX) on Wednesday came under renewed selling pressure as investors resumed profit-taking amid a dearth of any positive triggers and mounting regional tensions, pulling the benchmark KSE-100 below the 183,000-point barrier.
Topline Securities Ltd said the bourse witnessed a round of profit-taking as investors chose to lock in gains following the recent rally. The benchmark index remained volatile throughout the session, hitting an intraday high of 775 points and a low of 1,581 points before closing at 182,569.82, down 1,381.69 points or 0.75pc.
Defying the broader market trend, the E&P sector emerged as a notable outperformer. Oil and Gas Development Company rose 2.95pc, while Pakistan Petroleum gained 2.12pc, both closing higher than the previous session amid selective buying interest in energy stocks.
On the index front, heavyweights including OGDCL, PPL, Askari Bank, Meezan Bank, and Atlas Honda Ltd lent support, collectively contributing 429 points. Conversely, weakness in United Bank, MCB Bank, Fauji Fertiliser, Lucky Cement, and Hub Power weighed on sentiment, shaving 897 points off the benchmark.
Trading activity remained subdued, with total market volume fell to 1.031 billion shares. However, the value of shares traded rose 5.19pc to Rs65.9bn. K-Electric led the volume chart, with 56 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the subdued market momentum to heightened geopolitical tensions, as investors adopted a cautious stance amid escalating uncertainty in the Middle East.
On the macro front, Bloomberg expects Pakistan’s recent inflation slowdown to 5.6pc year-on-year to be temporary. CPI is projected to reaccelerate due to base effects, stronger demand, and rising energy prices, with inflation potentially nearing 8pc by 4QFY26. This outlook suggests the SBP is likely to maintain its policy rate at 10.5pc, with upside risks stemming from potential oil price shocks.
Published in Dawn, January 15th, 2026
