Islamabad, July 8, 2025: The Pakistan Stock Exchange (PSX) opened Tuesday with a sharp correction, as the benchmark KSE-100 Index dropped over 500 points in early trading. This comes after a seven-day winning streak that had pushed the index to historic highs.
At 10:15am, the KSE-100 Index fell by 501.25 points or 0.38%, reaching 132,868.89. The pullback was largely due to investor profit-taking, as market participants reacted to global economic jitters and new U.S. tariff threats.
Selling pressure was visible across key sectors including banks, oil and gas, cement, fertiliser, and automobile companies. Major laggards included HUBCO, OGDC, Mari Petroleum, PSO, MCB, MEBL, and UBL, all contributing to the downward pressure.
The correction follows Monday’s record close of 133,370, fueled by strong corporate earnings forecasts and improved macroeconomic indicators. Experts had warned that the rally—amounting to over 11,500 points in just seven sessions—was overheated.
“This correction was expected. Investors saw an opportunity to lock in profits amid rising global risks,” said a senior Karachi-based equity dealer.
The drop in PSX also reflects caution across Asian markets after former U.S. President Donald Trump announced steep tariff increases on 14 countries, including Japan and South Korea. However, global markets later rebounded slightly on news that the U.S. may delay enforcement until August 1.
Japan’s Nikkei recovered 0.4% after early losses, and South Korea’s KOSPI gained 1.5%. The broader MSCI Asia-Pacific index also inched up 0.2%.
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Despite global uncertainty, analysts believe Pakistan’s stock market fundamentals remain solid due to easing inflation, a stronger rupee, and positive earnings momentum.
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“Short-term volatility is likely, but the PSX outlook stays bullish as long as local macro trends hold steady,” a market analyst noted.
