Karachi, April 16, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a sharp decline of 755 points on Wednesday, closing at 116,020 points, down from the previous day’s close of 116,775 points.
This drop came despite seemingly favorable developments on the economic front, including an upgrade in Pakistan’s sovereign credit rating.
Analysts at Chase Securities Pvt Ltd noted that the KSE-100 suffered due to mixed investor sentiment, even as Fitch Ratings raised Pakistan’s credit rating from ‘CCC+’ to ‘B-’. This upgrade was expected to bring positive momentum to the equity market, but profit-taking and sector-specific pressures outweighed the good news.
Trading volume stood at 608 million shares with a total value of PKR 49 billion, indicating active participation despite the bearish trend. However, major pressure was observed in the energy sector, where key stocks faced selling. Pakistan State Oil (PSO) dropped by 2.43%, Oil and Gas Development Company (OGDC) by 1.22%, Pakistan Petroleum Limited (PPL) by 1.76%, and Mari Petroleum (MARI) by 2.51%. This occurred even after a promising PKR 1.2 trillion circular debt settlement agreement, which had initially created optimism among investors.
On the banking front, United Bank Limited (UBL) posted robust quarterly earnings, pushing its stock up by nearly 7% during the day. However, the gains could not be sustained, and the stock ended the session just 1% higher, mirroring the broader market’s downward pressure.
Meanwhile, gold prices surged to a record high of $3,019 per ounce, as global investors sought safety amid rising fears of recession, ongoing geopolitical tensions—including the Israel-Gaza conflict—and potential interest rate cuts by the U.S. Federal Reserve.
Despite positive news, the KSE-100 continues to display volatility. Investors remain cautious, and with the KSE-100 shedding points for a second consecutive session, market watchers are urging prudent strategies as the index struggles to regain upward momentum.