ISLAMABAD: Pakistan鈥檚 stock market ended lower on Thursday as investors locked in gains following a recent surge, even though there were no major policy or economic surprises during the session, analysts said. 

The KSE鈥�100 Index closed at 124,093, down 260 points, or 0.21 percent, after swinging between an intraday high of 2,365 points and a low of 501 points, reflecting heightened volatility tied to profit-taking in heavyweight sectors.

Trading activity was brisk: the broader all鈥憇hares index traded 1.018 billion shares, indicating strong market participation and continued investor engagement .

鈥淭he Pakistan stock market ended the session on a negative note, weighed down by cautious investor sentiment and profit-taking activity,鈥� Pakistani brokerage house Topline Securities said in its daily market review. 

The Pakistani market has rallied over 80 percent in the past year, boosted by a favorable macroeconomic environment, easing inflation, and the resumption of an International Monetary Fund (IMF) support program. That momentum peaked in early June, with the KSE鈥�100 briefly nearing the 126,700 mark .

Profit鈥憈aking was the most likely trigger for Thursday鈥檚 dip, particularly in the banking, cement, and energy sectors, where gains had been steepest in recent weeks.

Market participants are also assessing the federal budget for 2025-26, released this week, which aims to boost GDP growth to 4.2 percent, reduce the fiscal deficit, and implement reforms under a broader $7 billion IMF program.

With profit-booking likely to persist, analysts predict a period of range-bound trading in the short term. The budget鈥檚 implementation and IMF engagement will be key drivers, with any setbacks in revenue mobilization or delays in reform efforts presenting downside risks.

That said, if broader economic stability holds and reforms proceed as planned, sentiment is likely to stabilize, keeping the market on solid footing, analysts say.