Karachi, June 26, 2025 – The Pakistan Stock Exchange (PSX) faced a sharp pullback on Thursday as investors resorted to heavy profit taking ahead of the fiscal year-end.
The benchmark KSE-100 index plunged by 715 points, marking a significant shift in sentiment after two days of bullish momentum.
The KSE-100 index opened strong and even surged by 656 points intraday, but investor caution soon took over. With quarterly and fiscal year closings just days away, many traders and institutional players chose to book gains, triggering a wave of profit taking that drove the index down to close at 122,046 points, compared to the previous close of 122,761 points.
Market analysts at Topline Securities Limited noted that the downturn was largely technical and expected. “Following impressive gains earlier this week, the market naturally entered a phase of profit taking. Portfolio managers are rebalancing their positions and locking in gains to present stronger fiscal year-end reports,” the firm stated.
Despite the correction, the PSX maintained strong trading activity. Over 750 million shares were traded during the session, reflecting continued investor interest. The total traded value reached PKR 29.8 billion, underscoring that market participation remains healthy even amid declines. PIBTL topped the volume charts with a robust 37.5 million shares traded.
Key contributors to the index included ENGROH, NATF, PPL, and TGL, which collectively added +228 points. However, their gains were overshadowed by significant losses in BAHL, LUCK, HBL, PSEL, and SYS, which together dragged the index down by a hefty -407 points.
Market observers believe that this bout of profit taking at the PSX is part of a broader global trend, as equities worldwide adjust for quarter-end valuations. “It’s not panic selling,” one senior trader remarked, “but rather strategic profit taking. Investors are locking in returns after a high-performance run in anticipation of the next fiscal cycle.”
Looking ahead, analysts expect further choppiness in the market until the fiscal year concludes, with cautious optimism about potential upside in early July. For now, the PSX remains on traders’ radar as they navigate between profit taking and positioning for the next growth phase.