KARACHI, May 6, 2025 – The Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Tuesday as the benchmark KSE-100 index shed 534 points, closing at 113,568 points, down from the previous day’s close of 114,102 points.
This decline came despite the State Bank of Pakistan’s (SBP) unexpected policy rate cut, which was widely expected to boost investor sentiment.
The trading session began on a positive note, with the KSE-100 index surging by nearly 990 points in early trade. The monetary policy decision had initially lifted hopes for increased market liquidity and corporate profitability, fueling early optimism. However, the momentum was short-lived.
Market sentiment quickly turned negative due to ongoing regional tensions, leading investors to adopt a risk-averse approach. As a result, heavy profit-taking was observed across key sectors, pulling the KSE-100 index into negative territory by the end of the session.
Analysts at Chase Securities Limited noted that despite the monetary easing, the geopolitical uncertainty overshadowed economic optimism. “The market opened strong but quickly lost steam as investors moved to secure gains amid growing border tensions,” they stated. The day’s total traded volume stood at 580 million shares, while the traded value reached Rs37.17 billion.
The cement sector was notably affected, as investors used the early rally to book profits. Major players like DG Khan Cement (DGKC) declined by 1.69%, Maple Leaf Cement (MLCF) dropped 1.95%, and Lucky Cement (LUCK) saw a more significant fall of 3.49%.
Some positive activity was observed in the oil and gas sector. Exploration and marketing companies such as OGDC, Pakistan Petroleum Limited (PPL), and Pakistan State Oil (PSO) recorded gains of 1-2%, buoyed by optimism regarding the disbursement of payments from banks to address the country’s Rs1.2 trillion circular debt issue.
While the SBP’s rate cut aimed to stimulate market confidence, the KSE-100 index’s performance suggests broader concerns continue to weigh heavily on investor sentiment. Until geopolitical risks ease and economic indicators stabilize, the KSE-100 may remain under pressure despite policy support.