PSX tumbles over 1300 points as broad-based selling returns to key sectors

The Pakistan Stock Exchange (PSX) experienced significant selling pressure on Wednesday, with the benchmark KSE-100 Index dropping over 1,300 points during during the day’s trade. 

According to the PSX website, the market opened on a bearish note, and the KSE-100 Index plunged by over 1,500 points within the first half hour of trading. 

By 10:51 am, the index had dropped to 112,900.28 points, shedding more than 2,600 points. At 10:05 am, the market was trading at 113,376.03, down by 2,156.40 points, or 1.87%, compared to the previous close of 115,532.43 points.

At the closing bell, the market recovered some of the losses as the index stood at 114,153.15 points, down by 1,379 points (1.19%) from the previous day’s close.

Across the board, key sectors such as automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries faced heavy losses. 

Index-heavyweights, including MARI, POL, PPL, PSO, SNGPL, SSGC, ARL, MCB, NBP, and UBL, all traded in the negative zone.

Tuesday had seen a rebound in the PSX, with the KSE-100 Index rising by 623 points, or 0.54%, closing at 115,532.43. This positive momentum had been fueled by gains in various sectors, in line with a positive trend in global markets.

Topline Securities attributed yesterday’s recovery to stocks such as LUCK, MARI, MEBL, BAHL, and BAFL, which together contributed 688 points to the index. A total of 526 million shares were traded, with a turnover of Rs 33 billion. CNERGY led the trading volume with 121 million shares exchanged.

On the global front, stock indexes in Asia faced a downturn on Wednesday following the implementation of President Donald Trump’s 104% tariffs on China, while concerns over a massive selloff in U.S. Treasuries heightened fears of foreign funds leaving U.S. assets.

The oil market also shattered with the prices dropping to their lowest in more than four years on looming demand concerns fuelled by an escalating tariff war between the U.S. and China, the world’s two biggest economies, and a rising supply outlook.

Brent futures lost $2.38, or 3.79%, to $60.44 a barrel as of 0423 GMT. U.S. West Texas Intermediate crude futures fell $2.46, or 4.13%, to $57.12. Both contracts touched their lowest level since February 2021.