The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Thursday, with the benchmark KSE-100 Index falling by 1,510.19 points, or 1.32%, to close at 112,638.26. The session marked another volatile trading day, as political uncertainties and a lack of positive triggers spurred across-the-board selling.
During the session, the index swung between an intraday high of 114,329.95 and a low of 112,594.66, reflecting a range of 1,735.29 points. Trading volume on the KSE-100 stood at 268.88 million shares, significantly lower than previous sessions.
Ali Najib, Head of Sales at Insight Securities, attributed the market’s negative performance to ongoing political developments and continuous foreign selling. Speaking to Mettis Global, he remarked, “Rising uncertainties on the political landscape and concerns over statements from the newly elected US administration regarding Pakistan’s opposition leader are creating a cautious environment for investors.”
Najib further noted that any developments favoring the detained opposition leader could destabilize the current ruling coalition and its policies, adding to investor concerns.
Heavy selling was observed across major sectors, including cement, commercial banks, oil and gas exploration, and automobile assemblers. Among the top contributors to the index’s decline were Engro Fertilizers (-207.12 points), Mari Petroleum (-129.64 points), Meezan Bank (-98.11 points), Lucky Cement (-95.74 points)
On the other hand, some stocks provided marginal support, with JDW Sugar Mills adding 26.46 points, followed by HBL (+21.78 points) and Pakistan GasPort (+19.89 points).
The All-Share Index also closed in the red, shedding 796.29 points, or 1.13%, to settle at 69,946.89. Market volume on the broader index dropped to 695.14 million shares, down from 1.1 billion shares in the previous session, while traded value declined to Rs24.29 billion from Rs32.47 billion.
WorldCall Telecom led the volume charts with 195.30 million shares traded, followed by K-Electric and Cnergyico PK at 48.68 million and 35.46 million shares, respectively.
Analysts expect the market to remain volatile in the near term, with investors closely monitoring political developments and statements from the US administration. Internationally, sentiment in equity markets remains fragile due to concerns over rising US Treasury yields and global economic uncertainties, which could further influence local market trends.
Despite Thursday’s downturn, the KSE-100 has gained 34,193 points, or 43.59%, during the fiscal year, though it has lost 2,489 points, or 2.16%, in the calendar year to date.
