PSX pulls back as profit-taking cools record rally

The Pakistan Stock Exchange retreated on Monday as investors booked profits following a record-setting run, with sentiment dented by weak fiscal indicators and widening external imbalances. The benchmark KSE-100 Index closed at 167,752.40, down 1,237.67 points or 0.73% from Friday’s finish at 168,990.07.

Intraday, the index briefly climbed to 169,326.35 — up 0.2% — before reversing to a session low of 165,997.36, a drop of 1.77% from the prior close. Market participants pointed to resistance levels and stretched valuations after recent gains.

“The market, after a phenomenal run, has run into selling pressure,” said Ahfaz Mustafa, chief executive at Ismail Iqbal Securities, citing a miss in Federal Board of Revenue collection, a widening trade deficit and renewed inflation concerns. Elevated leverage in the system, he added, was magnifying swings as investors took money off the table.

Latest numbers underscored the macro strain. The FBR collected Rs2.88 trillion in the first quarter of FY26, falling short of the Rs3.083 trillion goal by Rs198 billion. September receipts of Rs1.23 trillion also missed the monthly target by Rs138 billion, and were below the IMF’s conservative benchmark. Meanwhile, Pakistan’s trade gap widened nearly 46% year-on-year in September to $3.34 billion as imports rose 14% and exports fell 11.7%, pressuring the rupee and reserves.

The services trade deficit expanded 21.9% year-on-year in August to $437 million. Weekly inflation measured by the Sensitive Price Indicator rose 0.56% in the week ended October 2. On Friday, the KSE-100 had added 0.3% to 168,990.07 after touching an intraday high of 169,988.62.