The Pakistan stock market today continued to face selling pressure as investors booked profits amid rising geopolitical tensions and mixed economic indicators.

The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) fell sharply by 1,732.18 points, or 1.09%, closing at 156,732.87 on Thursday.

Earlier in the session, the index had shown signs of strength, touching an intraday high of 159,507.41 points, up 0.66%, before reversing gains and hitting a low of 156,327.6 points, marking a steep 1.35% drop.

Market experts attributed the downturn to a combination of profit-taking and geopolitical uncertainties that have dampened investor sentiment. Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, noted that many investors chose to secure gains from recent rallies while remaining cautious about external political and economic developments.

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Adding to the mix, the government successfully raised Rs1.057 trillion through the auction of market Treasury bills (T-bills) on Wednesday, surpassing its target of Rs950 billion. Despite the strong participation of Rs2.132 trillion, yields showed mixed trends following the State Bank of Pakistan’s (SBP) decision to keep interest rates unchanged. The 12-month yield inched up by 10 basis points (bps) to 11.3498%, while shorter-term yields remained relatively stable.

Meanwhile, fresh data from Topline Securities revealed that the SBP purchased $7.15 billion from the interbank market between August 2024 and July 2025, a move aimed at strengthening foreign exchange reserves and stabilizing the currency.

The decline came just a day after the market suffered another heavy blow — on Wednesday, the KSE-100 Index dropped 1,635.97 points, or 1.02%, closing at 158,465.05 points.