Karachi, June 19, 2025 – The Pakistan Stock Exchange (PSX) faced a significant setback on Thursday, as the benchmark KSE-100 index dropped by 463 points, closing at 120,003 points compared to the previous day’s close of 120,466 points. The decline came amid heightened global uncertainty and rising geopolitical tensions that weighed heavily on investor sentiment.
Analysts at Topline Securities Limited reported that the KSE-100 index opened the session on a strong note, initially responding positively to the federal cabinet’s approval of a long-awaited financial restructuring plan. The plan aims to reduce Pakistan’s circular debt by Rs1.275 trillion over the next six years—an announcement that briefly energized the market.
On the back of this positive development, the KSE-100 index soared by as much as 1,279 points during intraday trading. However, the early rally was quickly reversed as profit-taking emerged across the board, in line with weakness seen in global equity markets.
The escalating conflict between Iran and Israel further intensified global jitters, leading investors worldwide to adopt a risk-averse stance. This volatile global backdrop overshadowed domestic optimism and underscored the vulnerability of local markets to external shocks. The KSE-100 index, which has remained sensitive to regional developments, ultimately reflected this sentiment with a sharp downturn by the session’s end.
Despite the overall decline, select index-heavy stocks managed to cushion some of the losses. Key support came from United Bank Limited (UBL), Bank AL Habib (BAHL), MCB Bank, and Habib Metropolitan Bank (HMB), which collectively added 203 points to the index. However, these gains were offset by declines in major players such as Pakistan GasPort (PKGP), Engro Fertilizers (EFERT), Engro Corporation (ENGROH), and Lucky Cement (LUCK), which pulled the index down by a combined 270 points.
Market participation remained strong, reflecting sustained investor engagement. Trading volumes surged to 598 million shares, while the total traded value stood at Rs20.3 billion. WorldCall Telecom (WTL) led the volume charts with 64 million shares traded.
Analysts warn that the KSE-100 index may continue to exhibit volatility in the short term, as global market movements and geopolitical developments remain critical drivers of investor behavior.