The Pakistan Stock Exchange (PSX) experienced a volatile session, with the KSE-100 Index fluctuating between gains and losses before ultimately closing lower at 163,806 points, representing a decline of 639 points, or 0.39%.

Investor sentiment remained cautious as participants opted to square off positions ahead of the weekend. Heavyweights such as MARI, UBL, HBL, POL, and ENGRO faced notable selling pressure, collectively dragging the index down by 381 points.

On the macroeconomic front, the Sensitive Price Index (SPI) for the week ended October 16, 2025, registered a 4.57% year-on-year increase and a 0.49% week-on-week rise, reflecting persistent inflationary pressures.

Also Read: SC says companies must pay their due share of super tax

A survey by Arif Habib Limited indicated a broad market consensus for a status quo stance ahead of the upcoming Monetary Policy Meeting on October 27, 2025, with 87.5% of respondents expecting the State Bank of Pakistan (SBP) to maintain the policy rate.

Despite the cautious tone, market activity remained vibrant, with 1.98 billion shares traded and an aggregate value of PKR 36.9 billion. WTL led the volume charts with an impressive 891.3 million shares, reflecting sustained retail participation.

On a weekly basis, the PSX closed in positive territory, gaining 708 points (+0.43%), with the benchmark KSE-100 opening at 161,402, touching a high of 167,562, and dipping to a low of 157,678 before stabilizing at 163,806.

PSX wrapped up the week just below the 165–170 consolidation zone, maintaining its cautious tone. The index is expected to continue with a cautious tone in the coming sessions, as investors await monetary cues and macro clarity before taking fresh positions, said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.