PSX slips as profit-taking, geopolitics weigh on sentiment

The bourse remained under selling pressure on Thursday, with investors cashing in gains as geopolitical tensions flared.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 156,732.87 points, down 1,732.18 points, or -1.09%, from the previous close of 158,465.05.

During the session, the index climbed to an intraday high of 159,507.41 points, gaining 1,042.36 points, or 0.66%, before dropping to a low of 156,327.6 points, reflecting a decline of 2,137.45 points, or 1.35%.

Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, gave profit taking and geopolitical tensions as the key drivers behind the decline.

The government raised Rs1.057 trillion from the auction of market Treasury bills (T-bills) on Wednesday, surpassing its target of Rs950 billion, as yields moved in mixed directions following the State Bank’s decision to keep interest rates unchanged.

The total participation stood at Rs2.132 trillion, with the 12-month yield rising 10 basis points (bps) to 11.3498%, while shorter tenures remained largely stable.

Separately, the State Bank of Pakistan (SBP) purchased $7.15 billion from the interbank market over the past 12 months (August 2024–July 2025) to support foreign exchange reserves, according to data cited by Topline Securities.

On Wednesday, the KSE-100 Index fell 1,635.97 points, or 1.02%, to 158,465.05 points from 160,101.02 points a day earlier. The index traded between a high of 160,690.12 and a low of 158,306.84.