Karachi, February 3, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday, shedding 1,511 points, or 1.32%, as investors reacted negatively to concerns surrounding a potential tax package for the property sector.
The KSE-100 index closed at 112,745 points, down from Friday’s closing of 114,256 points, reflecting the prevailing uncertainty among investors. Market analysts highlighted that apprehensions over the anticipated tax measures aimed at stimulating the construction sector weighed heavily on investor sentiment.
Furthermore, the KSE-100 index was also influenced by global market developments, particularly the recent tariff policy changes announced by the U.S. government. According to analysts at Topline Securities Limited, the index mirrored trends in global equity markets, which faced turbulence after U.S. President Donald Trump imposed extensive tariffs on imports from Mexico, Canada, and China. This move created widespread volatility, affecting investor confidence worldwide, including at the PSX.
At the opening bell, the KSE-100 index came under immediate selling pressure, witnessing a steep decline and reaching an intraday low of 1,574 points. Although a mild recovery attempt was observed later in the session, the market struggled to regain momentum and ultimately closed at 112,745 points, reflecting a net loss of 1,510 points or 1.32%.
Investor sentiment remained fragile, driven by rising concerns over global trade dynamics and their potential economic implications. The KSE-100 index continued its downward trajectory as investors weighed the broader impact of these developments on key sectors.
Despite the overall market downturn, a slight positive note emerged as Pakistan’s Consumer Price Index (CPI) for January 2025 recorded a historic low of 2.41%, the lowest inflation rate in 111 months. This marked a significant drop from December 2024’s inflation rate of 4.1%, offering some respite amid the bearish trend.
Key stocks contributing to the decline in the KSE-100 index included ENGROH, MARI, FFC, SYS, and PPL, collectively dragging the index down by 769 points.
Overall trading activity remained subdued, with a total volume of 399 million shares and a market turnover of Rs 20.3 billion. WTL led the volume charts with 26 million shares exchanging hands, indicating selective investor interest despite the broader market downturn.