KSE-100 plunges 1,204 points after IMF lowers GDP growth forecast

KARACHI: The Pakistan Stock Exchange (PSX) closed sharply lower after a positive momentum for four consecutive sessions. The benchmark KSE-100 index plunged by 1,204 points after the IMF slashed the GDP growth forecast to 2.6 per cent for FY25.

The index decreased by 1,204.21 points, or 1.02 per cent, to 117,226.15 points, down from the 118,430.35 points recorded in the last session. The highest index of the day remained at 118,811.24 points, while the lowest level was recorded at 117,120.39 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks closed sharply lower after the IMF slashes GDP growth forecast [for Pakistan] to 2.6 per cent for FY25 amid Trump tariff blow.” He said Fitch Ratings forecast on the weakening rupee, political noise and fears over a fallout on security unrest in Indian occupied Kashmir played a catalyst role in the bearish close at the PSX.

The KSE-30 index decreased by 383.53 points or 1.05 per cent to 36,019.66 points from 36,403.2 points. Traded shares dropped by 135 million shares to 605.175 million shares from 740.872 million shares. The trading value dropped to Rs27.762 billion from Rs30.516 billion. Market capital narrowed to Rs14.34 trillion against Rs14.444 trillion. Of the 457 companies active in the session, 127 closed in green, 276 in red and 54 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said that after four consecutive sessions of bullish momentum, bears made a forceful comeback on the local bourse. The index witnessed heightened volatility, plunging to an intraday low of 1,309 points before settling at 117,226, marking a sharp decline of 1,204 points or 1.02 per cent.

This reversal in sentiment can largely be attributed to escalating regional geopolitical tensions, which prompted investors to adopt a cautious stance and lock in recent gains, he said. The downward trajectory of the index was significantly influenced by negative contributions from key stocks, including UBL, HUBC, HMB, MARI, and ENGROH, which collectively dragged the index down by 526 points.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs247.28 to Rs2,720.07 per share, followed by Khyber Tobacco Company Limited, which increased by Rs28.68 to Rs315.46 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs128.70 to Rs22,942.73 per share; Hoechst Pakistan Limited followed it, which closed lower by Rs84.02 to Rs3,074.48 per share.

Analyst Muhammad Hasan Ather at JS Global said that the decline is mainly attributed to heightened investor uncertainty, a modest rise in the dollar, and the broader impact of global financial instability.

Analysts suggest that persistent economic challenges and global market volatility continue to weigh on sentiment. “However, a potential easing of monetary policy and anticipated IMF support could provide a more optimistic outlook in the future,” Ather said.

BO Punjab remained the volume leader with 58.495 million shares, which closed lower by 41 paisas to Rs10.04 per share. WorldCall Telecom, with 33.012 million shares, followed it, which closed lower by 2 paisas to Rs1.33 per share.

Other significant turnover stocks included Power Cement, Dewan Cement, Maple Leaf, Cnergyico PK, Fauji Foods Ltd, Symmetry Group Ltd, Telecard Limited and Barkat Frisian Agro. In the futures market, 319 companies recorded trading, 62 of which increased, 254 decreased, and 3 remained unchanged.