Karachi, July 9, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday, shedding 826 points as bearish sentiment gripped the market following a record-breaking rally since the beginning of the current fiscal year.
The KSE-100 closed at 132,577 points, down from the previous day’s all-time high of 133,403 points, marking a 0.62% drop. This retreat reflects a wave of profit-taking by investors who had capitalized on the recent surge, prompting a much-anticipated phase of market correction.
According to analysts at Topline Securities Limited, the index remained volatile throughout the session, swinging between an intraday high of 133,566 points and a low of 132,326. The selling pressure was primarily triggered by major blue-chip stocks, including Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), Bank AL Habib (BAHL), Pakistan State Oil (PSO), and Habib Bank Limited (HBL). These five counters collectively dragged the index down by 397 points.
Despite the downward movement, overall market activity remained robust. Trading volumes surged to 903 million shares, with a total turnover of Rs30 billion, indicating continued investor interest. TPL Properties (TPLP) led the volume board, recording a turnover of 65 million shares.
Market participants noted that the correction was expected after the KSE-100 index reached record levels earlier in the week. “This drop is healthy for the market,” said one senior equity strategist. “Such pullbacks help the index consolidate and offer opportunities for investors to re-enter at attractive levels.”
While profit-taking dominated Wednesday’s session, analysts believe that underlying fundamentals remain strong. Improved macroeconomic indicators, including growing foreign exchange reserves and narrowing trade deficits, have contributed to the recent bullish run on the PSX.
Looking ahead, experts suggest that the KSE-100 is likely to stabilize in the coming sessions, supported by anticipated corporate earnings announcements and investor confidence in fiscal reforms. However, they also caution that volatility may persist in the short term due to global economic uncertainties and regional geopolitical developments.
In summary, while the KSE-100 index has taken a breather from its record-setting rally, market sentiment remains cautiously optimistic as investors watch for fresh cues.