KARACHI: The Pakistan Stock Exchange (PSX) experienced a sharp downturn today, with the benchmark PSX-100 Index plummeting by 2,044.53 points, or 1.26%, to close at 160,119.28 on Tuesday, October 28, 2025.
The sell-off was driven primarily by an atmosphere of continued investor caution and global economic uncertainty. Market analysts cited ongoing profit-taking following a period of strong gains and jitters over rising international commodity prices, particularly in the energy sector.
Sector Performance and Key Movers
The market breadth was overwhelmingly negative, with declines outpacing advances. Several heavyweight sectors contributed significantly to the slide:
- Financials and Oil & Gas saw notable selling pressure.
- Among the top stocks by volume, K-Electric Ltd (KELE) and the Bank of Punjab (BOPU) were highly active, with K-Electric’s stock price dropping sharply by over 9%.
- The broader market reflected the caution, with total traded volume for the day exceeding 1 billion shares.
Economic Backdrop
The market performance comes shortly after the State Bank of Pakistan kept the benchmark policy rate unchanged at 11% in its latest monetary policy announcement, citing persistent inflationary pressures. The decision, though anticipated, did little to soothe investor sentiment, which remained focused on short-term consolidation.
Looking ahead, market participants are keeping a close eye on the government’s efforts to stabilise the current account and manage domestic unrest, which analysts suggest will determine the near-term trajectory of the market.
