Profit-taking sets in after bulls lift Pakistan Stock Exchange to historic high

Pakistan Stock Exchange (PSX) on Tuesday maintained upward momentum with the benchmark KSE-100 Index crossing the 188,000 level during the opening minutes of trading on Tuesday but later the buyers opted for profit-taking bringing the bourse down, reported 24NewsHD TV channel.

At 9:40am, the PSX’s benchmark index was hovering at 188,545.00, an increase of 783.31 points or 0.42%.

Buying interest was observed in key sectors, including automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks, including ARL, MARI, OGDC, POL, PSO, SNGPL, MCB, NBP and UBL, traded in the green.

But hour later, the buyers went in for profit-taking and at 10:35 am, the index was trading at 187,763.98, up only two points.

The earlier rally came amid growing expectations of a policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for January 26, following signals of further monetary easing from recent Treasury bills and Pakistan Investment Bond auctions.

More than half expect a 50-basis point cut, while a smaller group sees a deeper reduction of up to 100 basis points. One-fifth of respondents believe the central bank may keep rates unchanged.

In another key development, the International Monetary Fund (IMF) lowered Pakistan’s economic growth outlook, cutting its GDP projection for the current fiscal year to 3.2%, down from 3.6% estimated in its October 2025 World Economic Outlook.

The IMF, in its latest report, estimated Pakistan’s GDP growth at three percent in 2025, which is projected to grow to 3.2% in the outgoing fiscal year 2026 and 4.1% in 2027.

Earlier on Monday, the Pakistan Stock Exchange (PSX) KSE-100 Index closed at 187,761.69 points, marking an increase of 2,662.86 points or 1.44% from the previous session’s close of 185,098.83. The market moved within a range of 186,127.35 to 187,882.04 points, reflecting upbeat trading throughout the day.

Analysts said confidence returned to the trading floor as expectations grew that lower rates could ease financial pressure on businesses and give the market fresh momentum.

“Mid-cap stocks are seeing renewed interest due to hopes of rate cuts, a controlled current-account deficit, debt-restructuring expectations and the prospect of affordable funding through a panda bond,” said an independent market analyst. “This trend is likely to hold in the near term.”

Reporter: Kawish Memon