The Pakistan Stock Exchange (PSX) witnessed heavy selling pressure on Monday as the KSE-100 Index dropped sharply during early trading. Investors chose to book profits after last week’s record rally, leading to a negative start for the week.
At 9:40am, the benchmark KSE-100 Index stood at 167,365.77 points, showing a decline of 1,624.30 points or 0.96%. The fall reflected widespread selling across multiple key sectors, including banking, cement, oil, and power.
Major index-heavy stocks such as OGDC, PPL, MARI, PSO, HUBCO, POL, ARL, SNGP, SSGC, MCB, MEBL, and UBL traded in the red. Market analysts said the decline was mainly due to profit-taking after several weeks of upward momentum.
Despite the dip, a key positive development came as Bloomberg reported that Pakistan recorded the fastest decline in sovereign default risk. The country now ranks second globally, behind only Türkiye. This improvement in financial indicators may help restore investor confidence in the coming sessions.
Last week, the KSE maintained a strong rally, with the index closing at an all-time high of 168,990.06 points, up 4.1% week-on-week (WoW). According to JS Global Capital, it was the best nine-month performance since 2009, supported by optimism over improving macroeconomic conditions and robust sectoral performance.
On the international front, Japanese stocks saw a major surge. The Nikkei Index jumped 4.3% to an all-time high after Sanae Takaichi was elected leader of Japan’s ruling party, making her the frontrunner to become the country’s first female prime minister.
Other Asian markets remained mixed due to regional holidays. Hong Kong’s Hang Seng slipped 0.3%, while Australia’s benchmark index eased 0.1%. US S&P 500 futures rose 0.2% after hitting record highs on Friday.
The KSE’s sharp fall highlights short-term volatility in the market, though analysts believe long-term sentiment remains positive amid improving economic indicators.
In other related news also read Investor Optimism Fuels Historic Surge in Pakistan Stock Market
