Karachi, March 24, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday as the benchmark KSE-100 index plunged by more than 2,000 points.
The market downturn, driven by investor concerns over the International Monetary Fund (IMF), led to a significant drop of 1.69%.
The KSE-100 index closed at 116,440 points, marking a steep decline from last Friday’s closing level of 118,442 points. Market analysts at Topline Securities noted that the negative sentiment persisted throughout the trading session, with investors reacting to ongoing economic uncertainties and policy concerns.
A major factor behind the slump in the KSE-100 index was the IMF’s concerns regarding Pakistan’s fiscal policies. Reports indicated that the IMF was dissatisfied with the lack of adjustments to electricity tariffs and the absence of reductions in property taxes. These issues contributed to uncertainty in the market, prompting a wave of selling pressure on key stocks. Additionally, the proposal to increase royalty payments for cement manufacturers in Khyber Pakhtunkhwa further dampened investor confidence.
The KSE-100 index faced significant downward pressure, primarily due to declines in heavyweight stocks such as OGDC, ENGRO, FFC, PPL, and MARI. Collectively, these stocks dragged the index down by 811 points, intensifying the overall negative trend.
Trading activity on the PSX remained active despite the bearish trend. A total of 311 million shares were traded during the session, with a cumulative turnover of Rs 20 billion. PAEL emerged as the most traded stock of the day, with 28 million shares changing hands.
Market experts believe that the KSE-100 index may continue to remain volatile in the coming sessions, given the ongoing discussions with the IMF and the government’s potential policy adjustments. Investors are advised to keep a close watch on economic developments and policy changes that could impact the index’s performance. The KSE-100 index, being the key indicator of market sentiment, will remain under scrutiny as global and domestic factors shape Pakistan’s financial landscape.