Karachi, May 26, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Monday as the benchmark KSE-100 index plummeted by 882 points, closing at 118,221 points, down from Friday’s closing level of 119,103 points.
The decline was fueled by investor concerns over the delayed announcement of the federal budget for the fiscal year 2025–26, compounded by uncertainties surrounding the International Monetary Fund (IMF) program.
According to analysts at Topline Securities Limited, the session was dominated by broad-based profit-taking, as market participants reacted negatively to the lack of policy clarity. The KSE-100 index briefly fell as much as 952 points during intraday trading, reflecting deep-rooted investor unease. The day ultimately ended with a 0.74% loss in the index, which is widely considered a key barometer of market sentiment.
Market watchers noted that the bearish spell was largely driven by the absence of positive triggers and growing apprehensions regarding the government’s ongoing negotiations with the IMF. Delays in finalizing budgetary measures linked to IMF conditions have led investors to adopt a defensive approach, reducing their exposure to riskier assets.
K-Electric Limited (KEL) emerged as the most actively traded stock, with a staggering 246 million shares changing hands. KEL hit its upper circuit amid reports that the company had secured a dollar-linked tariff mechanism for its transmission and distribution operations—news that was received positively by market participants.
Conversely, energy sector heavyweights such as Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), and Pakistan State Oil (PSO) faced heavy selling pressure. Market rumors about delays in resolving the circular debt issue weighed heavily on these scrips.
Collectively, major index contributors including ENGROH, Systems Limited (SYS), PSO, Fauji Fertilizer Company (FFC), and OGDC were responsible for a 452-point drag on the KSE-100 index.
Despite the overall negative trend, trading activity remained buoyant. Total traded volume reached 634 million shares, while trading value stood at Rs18.5 billion, indicating sustained interest from both retail and institutional investors.
Market analysts believe that clarity on the budget timeline and IMF terms will be crucial for stabilizing the index and restoring investor confidence in the sessions ahead.