Karachi, January 28, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) faced a sharp decline on Tuesday, losing 1,490 points amid weaker-than-expected corporate results and persistent negative sentiment. The KSE-100 index closed at 112,030 points, significantly down from the previous day’s closing of 113,520 points.
According to analysts at Topline Securities Limited, the KSE-100 index reached an intraday low of 111,435 points before partially recovering to end the session at 112,030 points. The 1.31% drop reflected concerns over the January futures rollover, combined with underwhelming corporate earnings, which exacerbated selling pressure in the market.
The decline in the KSE-100 index was primarily driven by major contributors such as Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), Systems Limited (SYS), Mari Petroleum Company Limited (MARI), and Oil and Gas Development Company (OGDC). These five companies collectively accounted for 826 points of the overall market dip, highlighting the weight of their performance on the benchmark index.
Despite the significant downturn, trading activity remained robust. The market recorded a volume of 516 million shares, with a total turnover of Rs 29 billion. Worldcall Telecom Limited (WTL) emerged as the session’s volume leader, with 67 million shares changing hands, reflecting active investor participation despite the prevailing bearish trend.
Market experts noted that the KSE-100 index is facing a challenging environment due to uncertainties surrounding the corporate earnings season and economic pressures, including inflationary concerns and currency volatility. These factors are creating headwinds for investor sentiment, prompting cautious behavior among institutional and retail participants.
While the KSE-100 index experienced a sharp dip, analysts believe the market has the potential to rebound as corporate earnings for the coming quarters stabilize. Additionally, clarity on economic policies and possible improvements in external accounts could restore confidence in the equity market.
The broader outlook for the KSE-100 index will depend on how upcoming economic data and corporate announcements align with investor expectations. For now, market participants remain on edge, closely monitoring developments to assess the direction of the index in the near term.