KEY POINTS
- Karachi’s benchmark index falls 735.94 points (-0.45%) to 164,530.80.
- Declines broad-based: KSE30, All Shares also down.
- Investors cautious ahead of global interest rate signals.
- Regional markets firm as Asia jumps to new highs.
ISLAMABAD: Pakistan’s stock market lost ground on Thursday as investors opted for profit-taking following a brief rally. At the same time, mixed global trends and cautious sentiment ahead of major international rate decisions weighed on activity.
The benchmark KSE-100 Index closed at 164,530.80 points, down 735.94 points or 0.45 per cent, according to final data released by the Pakistan Stock Exchange (PSX).
Market performance
Trading remained largely range-bound through the session, with selling pressure visible in cement, banking, and energy stocks, which had gained sharply in recent days, prompting a technical correction.
The All-Share Index also slipped 436.62 points (-0.44%), while the KSE-30 Index fell 181.86 points (-0.36%), PSX data showed.
Turnover declined slightly from the previous day, reflecting a more cautious stance by investors.
Business Recorder quoted analysts saying that the market was “entering a phase of selective correction” after weeks of sustained buying on expectations of better corporate earnings and continued economic stabilisation.
“The overall sentiment remains positive, but short-term corrections are healthy for sustainability,” one brokerage strategist told The News on condition of anonymity.
Key factors
The fall was linked to profit-taking in heavyweight sectors, after strong quarterly advances, as well as to global uncertainty over the pace of expected interest rate cuts by major central banks, analysts observed.
Earlier in the week, investor confidence had improved on news of higher remittances and an upward revision in Pakistan’s GDP growth for FY25. But, traders turned cautious amid fresh signals from global bond markets.
Global markets and currency context
Across Asia, equities largely traded firm, with Japan’s Nikkei 225 and South Korea’s KOSPI hitting fresh highs as investors priced in early easing moves by the U.S. Federal Reserve, as reported by Reuters.
However, European markets turned lower on Thursday after HSBC’s plans to privatise its Hong Kong unit dragged down banking shares, it added.
Meanwhile, oil prices fell for a second day, reflecting expectations of a possible ceasefire in Gaza and stable global supply, and eased pressure on energy-importing economies such as Pakistan.
In the local currency market, the Pakistani rupee held relatively stable against the U.S. dollar in both interbank and open market trading, helping limit volatility on the equity front.
Outlook
Analysts said the market may remain choppy in the short term, with direction likely set by corporate earnings announcements and global monetary signals.
“The next trigger for equities will come from third-quarter results and clarity on monetary easing,” said a Karachi-based trader.
Despite the day’s decline, the KSE-100 remains up roughly 12 per cent since the start of the current fiscal year, supported by improving macroeconomic indicators and strong foreign inflows into select sectors.
