PSX Ends Flat Amid Inflation Concerns
- Karachi - Pakistan's benchmark KSE-100 index experienced a largely unchanged trading session on Wednesday, September 17, 2025, closing at 156,177.82, down a marginal 3.12 points.
- Inflation remains a significant concern for the Pakistani economy.
- Despite the inflationary concerns, the KSE-100 index traded within a relatively narrow range of 1,236 points throughout the day, reaching an intraday high of 157,197 and a low...
Pakistan’s KSE-100 Index Sees Minimal Change Amid Inflation Concerns and Flood impact
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Karachi – Pakistan’s benchmark KSE-100 index experienced a largely unchanged trading session on Wednesday, September 17, 2025, closing at 156,177.82, down a marginal 3.12 points. The market was influenced by rising inflationary pressures,exacerbated by recent devastating floods,and a cautious approach from investors.
Inflationary Pressures Mount
Inflation remains a significant concern for the Pakistani economy. The article highlights expectations of an 8.75% month-on-month increase in the food segment,perhaps the highest on record. This surge is directly linked to the recent floods which have disrupted agricultural supply chains and driven up prices. The State Bank of Pakistan (SBP) has been actively monitoring inflation and implementing monetary policy adjustments, but the impact of external shocks like the floods presents a considerable challenge. The SBP’s latest monetary policy statement, released September 16, 2025, indicated a continued focus on price stability,but acknowledged the downside risks to economic growth.
Market Performance: A “Tug-of-War”
Despite the inflationary concerns, the KSE-100 index traded within a relatively narrow range of 1,236 points throughout the day, reaching an intraday high of 157,197 and a low of 155,960. This volatility reflects a “classic tug-of-war” between bullish and bearish sentiment,as described by Ali Najib,Deputy Head of Trading at arif Habib Ltd.
Positive contributions from Systems Ltd, Lucky Cement, and Bank of Punjab, adding a collective 322 points, were countered by losses in Hub Power, Meezan Bank, Oil and Gas Growth Company, Pakistan petroleum, and United Bank, which collectively subtracted 278 points. This demonstrates the mixed signals within the market and the sensitivity to performance of key sector players.
Trading Volume and Liquidity
Market liquidity improved during the session, with trading volume increasing by 10.56% to 1.49 billion shares and the traded value rising by 12.87% to Rs48.8 billion. WorldCall Telecom remained the most actively traded stock, with 137.7 million shares exchanged. Increased trading volume often indicates heightened investor interest, even amidst uncertainty. WorldCall Telecom’s high trading volume may be attributable to specific company news or speculative trading activity.
Outlook and Analyst Expectations
Analysts predict the market will likely consolidate within the 155,000 to 158,000 point range in the near term. A potential support level of 154,000 points has been identified in case of further profit-taking. This suggests a cautious outlook, with investors anticipating potential downward pressure but also recognizing the possibility of a rebound if inflationary concerns ease or economic conditions improve. The ongoing monsoon season and the extent of flood damage will be critical factors influencing market sentiment in the coming weeks.