Islamabad, May 26, 2025: The Pakistan Stock Exchange (PSX) kicked off the week under pressure as the KSE-100 Index saw a steep decline of over 900 points during Monday’s session. Investor concerns about the upcoming federal budget and fresh fears of economic tightening weighed heavily on sentiment, triggering widespread selling across major sectors.
The Pakistan Stock Exchange (PSX) opened the new week deep in the red, with the benchmark KSE-100 Index tumbling by over 900 points in intra-day trading. At around 12:25 pm, the index had slumped to 118,173.4 — a staggering drop of 929.27 points — reflecting a 0.62% decrease by mid-session.
From the opening bell, the market mood was grim. The KSE-100 Index shed nearly 500 points in the first few hours of trading, eventually hovering at 118,453.07 by 12:45 pm. Key sectors such as oil and gas exploration, automobile assembly, oil marketing companies (OMCs), and power generation came under intense selling pressure.
Heavyweights including HUBCO, OGDC, POL, PSO, PPL, MARI, and SSGC traded deep in the red, contributing to the overall drag on the market.
Market analysts pointed to pre-budget uncertainty as a major factor behind the sharp sell-off. With the federal budget announcement just around the corner, fears about potential tax hikes and fiscal tightening have shaken investor confidence.
This trend is consistent with last week’s performance, where the PSX ended on a bearish note, losing 546.47 points and closing at 119,102.67 — down 0.45% from the prior week.
Comparatively, markets across Asia showed mixed signals. Japan’s Nikkei and other Asia-Pacific stocks posted slight gains, with the MSCI broad index rising by 0.12%. However, caution remained the dominant theme due to evolving global trade dynamics.
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Internationally, a glimmer of relief came after U.S. President Donald Trump postponed his tariff decision on European Union imports, slightly easing trade war fears. Yet, experts warned that Washington’s unpredictable trade stance continues to spook global markets, especially amid growing concerns over a U.S. recession and a broader global slowdown.
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