KSE Index falls more than 2,000 points as week begins bearishly

The PSX reached its highest point at 118,797.70 during intra-day trading.

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The Pakistan Stock Exchange (PSX) saw a significant decline at the start of the business week, with the benchmark KSE-100 Index falling by 2,002.55 points, closing at 116,439.62 .

This marks a decline of 1.69% from the previous close of 118,442.17.

Throughout the day, the market saw fluctuations, with the highest point reaching 118,797.70 and the lowest dropping to 116,257.51.

The trading volume stood at 167,106,163, with a total value of 15,680,198,106 PKR. This decline reflects ongoing market uncertainty, as investors remain cautious amidst the broader economic landscape.

Yesterday, the Pakistan Stock Exchange (PSX) experienced a bullish rally in the outgoing week, with the KSE-100 index surpassing the 119,000 mark during intra-day trading.

Investor sentiment was buoyed by optimism about a potential staff-level agreement between Pakistan and the International Monetary Fund (IMF) for the first review of the $7 billion Extended Fund Facility (EFF).

The week began with significant gains, as the KSE-100 index rose by 663 points, and continued its upward trajectory with an 801-point increase on Tuesday.

On Wednesday, the index hit a new high of 117,974, thanks to strong local institutional buying and hopes of resolving the circular debt issue.

The KSE-100 index peaked at 119,000 on Thursday, marking a new record before ending the week with a drop of 328 points.

By week's end, the index closed at 118,442, up 2,906 points (2.5%) from the previous week. Market momentum was supported by positive expectations surrounding the IMF's review and the potential resolution of the power-sector circular debt.

On the economic front, Pakistan’s current account deficit contracted by 97% in February 2025, while the country's foreign currency reserves rose by $49 million to $11.1 billion.

Sector-wise, exploration & production, technology, and power sectors contributed positively to the market, while the fertiliser and insurance sectors saw negative contributions.

Despite foreign selling continuing at $7.96 million, trading volumes surged by 51%, and the average traded value increased by 43%.

Analysts also highlighted that the government’s planned reduction in power tariffs and ongoing efforts to secure additional financing from the IMF were key factors influencing market sentiment.