The Pakistan Stock Exchange (PSX) witnessed another day of bearish movement on Friday as the benchmark KSE-100 Index closed lower, extending the pullback observed in the previous session. By the close of the trading day, the index settled at 184,409.67 points, reflecting a decline of 1,133.34 points, marking a drop of -0.61% on a day characterized by cautious investor sentiment and selective profit-taking.

Parallel market data mapped via a contract for difference (CFD) instrument that tracks Pakistan’s benchmark index also reflected losses, showing the index at 184,640 points, down -903 points or -0.49% from the previous session. Despite today’s correction, CFD-based performance indicators show the benchmark is still up +8.96% over the past month and stands +63.04% higher year-on-year, underscoring the strong rally witnessed during the current fiscal cycle.

Market participation moderated compared to previous sessions as investors adopted a wait-and-see approach. The session recorded a total traded volume of 393.47 million shares in the broader market, while the traded value amounted to approximately Rs 36.71 billion, indicating reduced aggressive positioning amid ongoing consolidation.

The session’s performance remained mixed across index constituents, with select mid-cap and speculative names witnessing renewed investor interest. FFL, MDTL, HASCOL, BML, and BOP dominated activity charts in terms of volume. MDTL surged +11.75%, emerging as one of the strongest performers of the day, followed by FFL and BML which also recorded modest gains. On the other hand, BOP declined -1.71%, reflecting sector-specific and stock-specific selling pressure.

Investor sentiment continued to reflect cautious repositioning following the recent record-breaking rally. Analysts have noted that with the index having surged materially over the past months, periodic profit-taking is natural, especially as participants reassess valuations and sector rotations unfold.

From a broader perspective, despite today’s negative session, the underlying performance trajectory remains robust. The index has appreciated significantly over the past year, driven by improving liquidity, active local participation, and optimistic macro sentiment. Market observers expect short-term volatility to persist as the market consolidates at elevated levels, while medium-term outlook remains tied to monetary policy signals, macroeconomic stabilization measures, and corporate earnings cycles.