Karachi, May 20, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Tuesday, losing 719 points amid a volatile trading session marked by profit-taking and a lack of market-moving catalysts.
The benchmark KSE-100 index closed at 118,971 points, down from the previous day’s closing of 119,690. The session was defined by volatility, as the index swung between an intraday high of 119,901 (up 211 points) and a steep low of 118,527 (down 1,163 points), reflecting considerable uncertainty among investors throughout the day.
Market analysts at Topline Securities Limited described the trading day as one of consolidation, where investor sentiment remained fragile amid a volatile backdrop. The persistent volatility in the PSX was driven by concerns over the upcoming federal budget, anticipated economic measures, and continued profit-taking, especially in major index-heavy sectors.
Heavyweight stocks including Fauji Fertilizer Company (FFC), United Bank Limited (UBL), Habib Bank Limited (HBL), Pakistan Petroleum Limited (PPL), and Engro Corporation (ENGROH) were among the major laggards. These five key players collectively dragged the KSE-100 index down by 386 points, amplifying the market’s overall bearish tone.
Trading volumes also reflected the volatile nature of the market. Total volume at the PSX dropped to 436 million shares, indicating reduced investor participation amid uncertainty. Meanwhile, the total traded value fell to PKR 20.7 billion, signaling a cautious approach by investors. PREMA emerged as the volume leader with 39 million shares traded, although gains in the broader market were limited.
Tuesday’s volatile session is part of a broader trend observed at the PSX in recent days, where short-term fluctuations have dominated investor behavior. The lack of immediate policy clarity and global economic concerns have added to the market’s unpredictable movements.
Despite the ongoing volatility, some analysts remain hopeful that the PSX could stabilize once the federal budget is unveiled and economic direction becomes clearer. Until then, the PSX is likely to experience further volatile sessions, with market players closely monitoring both domestic developments and global market cues.