Karachi, May 5, 2025 – The Pakistan Stock Exchange (PSX) witnessed a highly volatile trading session on Monday, ultimately shedding 12 points amid mixed investor sentiment and a much-anticipated monetary policy announcement by the State Bank of Pakistan (SBP).
The benchmark KSE-100 index opened the day on a weak note, plunging by as much as 1,036 points in early trading due to ongoing geopolitical concerns and uncertainty over international travel advisories involving India and Pakistan. However, the PSX staged a remarkable recovery later in the day, supported by buying in cyclical sectors — particularly cement — on the back of expectations surrounding an interest rate cut.
The index eventually closed at 114,102 points, down just 12 points, or 0.01%, from the previous session’s close of 114,114 points.
Topline Securities noted that despite the early plunge, investor interest remained intact as the PSX reacted to the SBP’s decision to reduce the policy rate by 100 basis points. This rate cut boosted sentiment across rate-sensitive sectors, especially cement, which saw a strong rebound. Stocks like Fauji Fertilizer Company (FFC), D.G. Khan Cement (DGKC), Fauji Cement Company Limited (FCCL), Pioneer Cement (POIC), and Maple Leaf Cement (MLCF) added a combined 276 points to the index.
Trading activity was robust throughout the session, with 398 million shares exchanged and total market turnover reaching Rs19 billion. POWER once again led the volume chart with 41 million shares traded.
Chase Securities also commented on the market’s behavior, labeling the session “volatile but resilient,” noting that the PSX closed slightly lower by just 11 points despite significant intra-day swings. It reported higher overall volumes of 539 million shares, with a total value of Rs30.68 billion.
While no significant escalation has occurred, persistent regional tensions and unverified reports about revised US travel advisories continue to create a volatile backdrop for the PSX.
Nonetheless, the rate cut announcement brought temporary relief and ignited rallies in leveraged stocks. Consumer-oriented shares like Pak Elektron (PAEL) and Sazgar Engineering (SAZGAR) also saw gains of up to 3%, reflecting optimism that lower borrowing costs will stimulate demand.
With global and regional factors keeping sentiment volatile, market participants remain cautiously optimistic about near-term PSX performance.