PSX Falls Over 1,700 Points as Investors Cash In After Market Rally

The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Friday as investors opted for profit-taking following the market’s strong upward momentum in recent sessions. The benchmark KSE-100 Index dropped by more than 1,700 points, ending the trading week on a negative note.

At the close of trading, the KSE-100 Index settled at 171,115 points, recording a decline of 1,778 points or 1.03 percent compared to the previous session.

Market analysts described the session as a typical correction after continuous gains in recent days. According to Ahmed Sheraz of KASB KTrade, investors preferred to secure profits, leading to selling pressure across major sectors.

Trading activity, however, remained healthy throughout the day. More than 1.06 billion shares were traded, with the total market turnover reaching nearly Rs49 billion. K-Electric (KEL) emerged as the most actively traded stock, with around 195.8 million shares exchanged during the session.

The decline was mainly driven by heavy selling in banking and exploration & production sectors. Major stocks including UBL, MEBL, ENGROH, PPL, OGDC, MARI, BAHL, FFC, and LUCK remained under pressure and contributed significantly to the index’s fall.

Investors also kept a close eye on global developments, especially rising tensions around the Strait of Hormuz and ongoing negotiations between the United States and Iran, reportedly facilitated through Pakistan. Crude oil prices continued hovering between $99 and $101 per barrel, adding uncertainty to regional markets.

Weak performance in US and Asian stock markets further affected investor confidence at the local bourse. Analysts believe market sentiment next week will largely depend on geopolitical developments and international economic signals.

Any major progress or escalation in US-Iran talks could directly influence investor behavior and the future direction of the Pakistan Stock Exchange.