The Pakistan Stock Exchange (PSX) experienced a notable reversal on Thursday, with early gains wiped out due to profit-taking by investors.
The KSE-100 Index reached an intra-day high of 120,699.17 points, marking a record, but ultimately closed at 119,153.04, down 778.41 points (0.65%) by market close.
Despite strong bullish momentum earlier in the session, profit-taking pressures saw the market give back its advances. The index had surged from Wednesday’s close of 119,931.46 points, where it rose by 960.33 points (0.81%), supported by active investor participation and optimism surrounding upcoming budget announcements and pro-growth fiscal measures.
Large-cap sectors such as banking, oil, and energy were key drivers behind the initial gains, contributing roughly 480 points to the index. The refinery sector also benefited following the government’s approval of Rs34 billion in dues clearance, paving the way for major plant upgrades.
Top performers on the day included National Bank of Pakistan (+10%), Bank AL Habib (+2.85%), and United Bank (+1.22%). However, pressure on auto stocks, influenced by the IMF-backed tariff relaxation and revised National Tariff Policy, led to declines in shares like Lucky Cement and Standard Chartered.
Trading activity intensified with volumes surging to 667.7 million shares, led by K-Electric at 103.7 million shares. Foreign investors were net sellers, offloading shares worth Rs146.9 million.
Looking ahead, market sentiment remains cautiously optimistic, buoyed by improving macroeconomic indicators. However, investors are expected to remain selective in the lead-up to the FY26 budget announcement scheduled for June 2.
