Political Uncertainty Drags PSX Lower

The Pakistan Stock Exchange (PSX) witnessed a turbulent session on Thursday, reversing early gains as political developments rattled investor confidence.

The benchmark KSE-100 index surged to an intra-day high of 151,250 points in the morning session. However, heavy selling pressure erased the momentum, dragging the index down to a low of 148,273. By the closing bell, it had settled at 149,235, representing a loss of 1,356 points, or 0.90%.

Traders linked the sell-off to the Supreme Court’s decision to grant bail to former prime minister Imran Khan in May 9 cases. The announcement triggered political uncertainty, prompting investors to turn cautious. Market watchers said that commercial banks, cement producers, and fertiliser firms were among the most affected sectors, contributing heavily to the overall decline.

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Analysts noted that despite political turbulence, broader economic indicators offered room for optimism. Experts pointed to falling interest rates, exchange rate stability, and a 29% return by the index since the start of the year as signs of underlying strength in equities.

The session began with strong bullish momentum but shifted sharply once political headlines dominated investor sentiment. Profit-taking added to the downturn, as traders preferred to secure recent gains after three days of advances.

Trading activity, however, remained high. The volume of shares exchanged rose to 1.1 billion compared with 668 million in the previous session, while the traded value reached Rs55.8 billion. Out of 480 companies traded, 130 closed higher, 323 fell, and 27 remained unchanged. Fauji Foods led the volume chart with 62 million shares traded.