By Ali Imran
ISLAMABAD: The equity market extended its pullback on Thursday as investors opted to book profits following a prolonged rally, with participants taking a cautious stance amid mixed corporate earnings and limited fresh triggers.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 164,590.41, down 1,962.86 points, or -1.18%, from the previous close of 166,553.27.
During the session, the index climbed to an intraday high of 166,720.42 points, up 167.15 points, or 0.1%, before dropping to a low of 164,395.38 points, reflecting a decline of 2,157.89 points, or -1.3%.
“Market lacks new triggers as the majority of good news is priced in already. Some results are also below expectations or a reality check in the emotionally driven rally.” said AAH Soomro, an independent investment and economic analyst.
Finance Minister Muhammad Aurangzeb said on Wednesday that while some multinational companies have exited Pakistan, new investors are entering the market. He acknowledged challenges in dividend repatriation but noted that Pakistan had cleared $4 billion in backlogged payments over the last two years, adding that “economic stability has returned.”
Investor sentiment was also influenced by the International Monetary Fund’s (IMF) latest Regional Economic Outlook, which revised Pakistan’s growth forecast upward to 3.6% for FY26. However, the Fund warned that recent flooding in Q3 2025 could weigh on growth, inflation, and the current account beyond expectations.
The IMF highlighted that inflation had decelerated this year due to lower food and energy prices, but was expected to rise again in 2026 with the phase-out of electricity subsidies. Pakistan’s GDP had expanded 3.04% in FY25, while the lender projected growth to accelerate modestly to 3.6% in FY26 amid steady reforms and improved financial conditions.
On Wednesday, the KSE-100 Index declined by 793.56 points, or 0.47%, to close at 166,553.28 points from 167,346.83 points recorded in the previous session. The highest index of the day remained at 168,163.22 points, while the lowest level was 166,230.90 points.
