PSX drops over 2,750 points as profit-taking pressure hits market

The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Thursday as the benchmark KSE-100 index fell sharply by more than 2,750 points amid heavy profit-taking by investors at higher levels.

The market, which had recently shown strength near the 171,000 mark, came under immediate selling pressure soon after trading began. Although the index initially touched an intra-day high of 171,561.74 points, the upward momentum quickly faded as sellers took control.

By midday, the KSE-100 index had declined to 168,828.24 points, reflecting a drop of 2,751.06 points or 1.6% compared to the previous close of 171,579.30 points.

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Market analysts linked the decline to a mix of technical correction and cautious investor sentiment. After a strong bullish run in recent weeks that pushed the index to record highs earlier in the year, the current downturn is being viewed as a natural “cooling-off” phase in the market cycle.

Despite the sharp fall, trading activity remained strong, with more than 211 million shares exchanged during the session. The total traded value was reported at approximately Rs11.46 billion, indicating continued investor participation even amid volatility.

The KSE-100 index remained near its intra-day low by midday, suggesting that bearish sentiment dominated market behavior. Analysts noted that any late-session recovery would likely depend on value buying from institutional investors or opportunistic traders.

Sector-wise pressure was most visible in banking, cement, and energy stocks, which had previously led the market’s upward rally. These heavyweight sectors contributed significantly to the decline as investors booked profits after recent gains.

Overall, the session reflected increased caution in the market as investors reassessed valuations following sustained bullish momentum in earlier trading periods.