PSX Investors Cautious Ahead of MPC Meeting: Bears Tighten Grip

The Pakistan Stock Exchange (PSX) closed another volatile week deep in the red as investors turned defensive ahead of next week’s crucial Monetary Policy Committee (MPC) meeting. The benchmark KSE-100 index fell 1,286 points, or 0.78%, on Friday to close at 163,304 points, marking yet another bearish session fueled by profit-taking and portfolio adjustments.

The market has now shed more than 3,200 points in just two sessions, reflecting growing investor caution amid economic uncertainty.

Profit-Taking Dominates as Investors Rebalance Portfolios

Market participants adopted a cautious stance throughout the session. Many chose to book profits and reduce exposure before the weekend, anticipating limited upside until monetary clarity emerges.

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, both rollover week and policy meetings typically amplify volatility, prompting traders to wait for direction. Research from AHL also predicts that the State Bank of Pakistan (SBP) will maintain the policy rate at 11%, citing recent inflationary upticks, a slightly widening current account deficit, and early signs of recovery in domestic demand.

Weekly Market Review#Market #Weeklyreview #PSX #AHL #Pakistan pic.twitter.com/bpxmbGhYMg^{[1][2][3][4][5][6]}

— Arif Habib Limited (@ArifHabibLtd) October 25, 2025^[7]

The banking sector once again led the decline, collectively shaving off 952 points from the index as heavyweights including UBL, BAHL, MEBL, HBL, BOP, AKBL, BAFL, and NBP came under pressure.

Market Activity Remains Strong Despite Correction

Despite the slide, trading activity stayed robust. A total of 1.03 billion shares changed hands, with a traded value of Rs. 34.9 billion. K-Electric (KEL) continued to dominate the volume chart, posting 194.8 million shares.

Market Snapshot – October 24, 2025

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Market Indices – At a Glance:

* KSE-100: Pullers & Draggers
* KMI-30: Pullers & Draggers pic.twitter.com/IlMxxAVXVp^[8]

— PSX (@pakstockexgltd) October 24, 2025^[9]

A day earlier, the market had already seen a steep decline of 1,962.87 points (1.18%), closing at 164,590.41 points. During Friday’s intraday session, the index dropped another 1,100 points to an intraday low of 163,490.37, underscoring sustained bearish momentum.

Across 474 companies, 147 advanced, 291 declined, and 36 remained unchanged. Meanwhile, market capitalisation slipped to Rs18.99 trillion, down from Rs. 19.21 trillion in the previous session.

Analysts Expect Temporary Consolidation

On a week-on-week (WoW) basis, the benchmark index lost 502 points (-0.31%). Analysts now believe the PSX may enter a consolidation phase as investors await macroeconomic clarity. The 160,000-point mark is expected to serve as a key support zone, while 165,000 could act as near-term resistance.

Experts add that stability around these levels might attract fresh buying once monetary direction becomes clearer. Until then, the bears continue to dominate, keeping traders on edge as Pakistan’s financial markets prepare for another decisive week.