Updated: October 16, 2025 | Karachi

The Pakistan Stock Exchange (PSX) witnessed a highly turbulent session on Thursday as investors navigated intense volatility throughout the day. Despite record-breaking trading activity, the KSE-100 Index closed deep in the red, losing 1,242 points or 0.75%, to finish at 164,445.

Early Gains Reversed Amid Late-Session Sell-Off

Trading kicked off on a positive note, driven by renewed optimism following reports of a 48-hour ceasefire between Pakistan and Afghanistan, which temporarily eased geopolitical concerns and lifted market sentiment. The index surged to an intraday high of 166,865 points — a gain of over 1,100 points — reflecting strong early buying interest across multiple sectors.

However, the momentum fizzled in the last hour of trading as investors shifted to profit-taking, triggering a broad-based sell-off. According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd., heavyweights from the fertiliser, technology, and banking sectors dragged the market lower. Key decliners included Engro Corporation (ENGROH), Systems Limited (SYS), Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Bank AL Habib (BAHL), Bank Alfalah (BAFL), and Habib Bank Limited (HBL) — collectively eroding over 800 points from the index.

Record-Breaking Trading Volume

Despite the decline, the PSX made history with its highest-ever single-day trading volume, recording 3.08 billion shares traded with a total value of Rs50.6 billion. K-Electric (KEL) dominated the charts, setting an all-time record of 1.02 billion shares traded, underscoring heightened participation from both retail and institutional investors even amid volatility.

Outlook: Market Expected to Stay Range-Bound

Analysts believe the market will likely remain range-bound in the near term as investors await fresh triggers before making new commitments. The KSE-100 Index is expected to consolidate between 165,000 and 170,000 points, with sentiment hinging on developments in the geopolitical landscape and upcoming macroeconomic indicators.