KARACHI: After hitting a record-high overnight, the Pakistan Stock Exchange (PSX) on Tuesday came under selling pressure as a section of investors indulged in profit-taking, forcing the benchmark KSE 100 index to close in the red.
According to Topline Securities Ltd, the PSX kicked off the trading on a jubilant note, cheering the deliverance of a surprise policy rate of 50bps to 10.5 per cent against all market polls. The SBP move fuelled early optimism, propelling the benchmark index to an intraday high of 1,185 points amid broad-based buying.
However, the early optimism proved short-lived as investors opted to lock in gains during the latter half of the session. Profit booking erased most of the early advances, dragging the index to an intraday low of 549 points before it finally settled at 170,447.30, down 294 points or 0.17pc, reflecting a cautious close despite supportive monetary signals.
United Bank, Bank of Punjab, National Bank, Kot Addu Power and Kohinoor Textile Mills, led the rally, collectively contributing around 471 points to the index. On the flip side, Fauji Fertiliser, Systems Ltd, Pakistan Petroleum, DH Partners Ltd and Oil and Gas Development Company weighed on performance, jointly shaving off 538 points.
Despite a bearish trend, the market participation turned robust as the total volume surged 29.91pc to 1.17 billion shares, while the traded value rose 12.05pc to Rs53.4bn. Pakistan International Bulk Terminal emerged as the most actively traded stock of the session, with 101m shares changing hands.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, remarked that following the SBP’s line, the PSX also delivered an unexpected move by closing in the red against positive market expectations.
Broad-based buying was witnessed during early trading hours, particularly in cyclical stocks. However, likely institutional profit-taking near the day’s highs weighed on sentiment, reversing early gains and pushing the benchmark into negative territory by the close.
Additionally, the government announced a reduction in the price of high-speed diesel by Rs14 per litre, bringing the new price to Rs265.65, while petrol prices remained unchanged at Rs263.45 per litre. Analysts remain hopeful that the SBP’s monetary stance will help the market regain momentum, with potential for further gains in the coming sessions.
Published in Dawn, December 17th, 2025
