PSX closes flat amid profit-taking, ADB’s cautious outlook

KSE-100 Index adds just 147 points with volatile trading pattern observed all day

PAKISTAN:

It was a choppy day at the Pakistan Stock Exchange (PSX) on Wednesday, as the benchmark KSE-100 Index moved in both directions before ending the session almost flat.

The market opened on a strong note, touching an intra-day high of 166,522.61 points. However, confidence remained shaky and gains were short-lived following news circulating that the Asian Development Bank (ADB) kept Pakistan’s growth forecast unchanged at 3% and flagged delays in reforms, while fresh disclosures to the IMF about a $1 billion hit to exports from floods added to concerns.

Read: In stellar run, PSX climbs to new high

Despite the government projecting a lower current account deficit and banking on higher remittances, both lenders' cautious tone was enough to dampen market enthusiasm. As a result, investors opted for profit-taking, dragging the index to a low of 164,155.32.

Despite the volatility, the bourse managed to recover some ground by the close, finishing at 165,640.34, in a flat state with a slight gain of just 0.09%, or 146.75 points.

KTrade Securities noted that the KSE-100 index closed at 165,640.34, gaining 146.75 points (+0.09%). Momentum came from banking, fertiliser, and energy names, while some pressure remained in other key sectors.

Read More: KSE-100 hits record as investors respond to IMF optimism

Overall, trading volume increased to 1.63 billion shares compared with Tuesday’s tally of 1.34 billion. Values of shares dropped to Rs69.6 billion from Tuesday’s figure of Rs76.7 billion.

Shares of 486 companies were traded. Of these, 173 closed higher, 287 dropped and 26 remained unchanged. K-Electric was the volume winner with trading in 299.7 million shares, gaining Rs0.39 to close at Rs7.34.

Early optimism in the session was fuelled by positive sentiment across select blue-chip stocks, but with the index hovering near record levels, many investors chose to book profits. This selling pressure outweighed fresh buying in the latter half, keeping the overall momentum in check.

Market direction unclear
The sideways close reflects growing investor caution amid uncertainty about interest rate policy, upcoming corporate earnings, and macroeconomic indicators. While underlying sentiment remains cautiously optimistic, further consolidation may be on the cards unless a fresh trigger emerges.

Volumes remained decent, but the indecisive trend suggests participants are waiting for clearer signals before making aggressive moves.