Investor Sentiment Weakens as PSX Declines in Ramadan Trading

The Pakistan Stock Exchange (PSX) opened the first session of Ramadan on a negative note, with foreign selling and disappointing corporate earnings dragging the market lower.

The benchmark KSE-100 Index swung between highs and lows throughout the day, reaching an intraday peak of 179,279 points before sliding to 175,807 points—a sharp decline of over 3,000 points. The index eventually closed weaker compared to the previous session, reflecting fragile investor confidence.

Market analysts noted that continuous foreign outflows have been a major factor behind the downturn, as overseas investors reduced exposure to Pakistani equities. Weak quarterly earnings further dampened sentiment, with several key companies failing to meet expectations.

Trading activity was also thinner than usual, as the start of Ramadan typically slows participation. This added to the volatility, with fewer buyers available to absorb selling pressure.

Despite the decline, some selective buying was observed in defensive sectors, though it was not enough to offset the broader weakness. Experts believe that investor confidence will remain cautious until earnings improve and foreign selling subsides.

The session highlights the challenges facing the PSX, where external pressures and domestic corporate performance continue to shape market direction. Investors are now watching closely for signs of stability in upcoming sessions.