KARACHI: The Pakistan Stock Exchange (PSX) fell on Thursday as continuous foreign selling and weak corporate earnings weighed on investor sentiment, while thinner participation on the first day of Ramadan contributed to slower trading.
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The benchmark KSE-100 Index fluctuated between a high of 179,279.74 (up 426.65 points, 0.24%) and a low of 175,807.52 (down 3,045.57 points, -1.7%) against Wednesday’s close of 178,853.09. Market analysts pointed to profit-taking following the previous session’s sharp rebound as another factor in the muted activity.
Mohammed Sohail, CEO of Topline Securities, attributed the bearish trend to “continuous foreign selling and weak corporate results.” Independent analyst AAH Soomro noted that volumes were “lacklustre due to the first day of Ramadan,” adding that market movements would depend on the quality of upcoming corporate results.
Data from the State Bank of Pakistan showed that foreign direct investment (FDI) in the first seven months of FY26 fell 41% year-on-year to $981.4 million, with net FDI in January standing at $173 million, reversing a net outflow of $135 million the previous month. China remained the largest investor, although net inflows declined to $495.5 million from $857.1 million a year earlier. Sector-wise, power inflows fell, telecoms posted higher outflows, and financial businesses attracted slightly higher investments.
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Meanwhile, in Wednesday’s Treasury bills auction, the government raised Rs651 billion in realized value, with mixed yields. Inflation edged up to 5.8% in January, while the SBP maintained its benchmark policy rate at 10.5%.
Despite Thursday’s dip, the KSE-100 had surged 5,702.68 points (3.29%) in the previous session, highlighting continued volatility amid macroeconomic pressures and cautious investor sentiment.