After two days of strong buying by local mutual funds, the Pakistan Stock Exchange (PSX) witnessed a volatile session on Wednesday as investors opted for profit booking.

The benchmark KSE-100 index fluctuated between an intraday high of 234 points and a low of 678 points before closing at 113,862, down 665 points (-0.58%).

The decline was largely driven by major stocks, including Engro Corporation (ENGROH), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Mari Petroleum (MARI), and Pakistan State Oil (PSO), which collectively wiped 417 points off the index, according to Topline Securities.

In the power sector, Hub Power Company (HUBC) announced its financial results for the second quarter of FY25, posting an earnings per share (EPS) of Rs3.25.

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The figure fell short of market expectations due to lower gross profits and higher other expenses.

However, the company declared a Rs5 per share dividend, surpassing industry forecasts.

Despite the market downturn, trading activity remained robust, with a total of 639.8 million shares changing hands and a turnover of Rs22.7 billion.

Cnergyico PK Limited (CNERGY) led the volume charts with 83.8 million shares traded, signalling continued investor interest in the stock.

Market analysts attributed the bearish close to uncertainty surrounding ongoing IMF negotiations.

Ahsan Mehanti of Arif Habib Corp stated that investor sentiment weakened due to concerns over the outcome of IMF talks on technical and policy matters, as well as approvals related to the federal budget for FY26.

“Weak global equities, volatile crude oil prices amid geopolitical risks, and uncertainty over tax reforms ahead of the IMF review for the next tranche under the Extended Fund Facility (EFF) played a key role in the market’s decline,” Mehanti added.

The previous day, the KSE-100 Index had closed slightly higher, settling at 114,528.09, up by 197.98 points or 0.17%.

Meanwhile, global markets showed resilience, with Asian shares rising ahead of significant earnings reports, particularly from Nvidia.