Bears take over Pakistan Stock Exchange as benchmark index drops near 2% at close

The Pakistan Stock Exchange (PSX) opened on a bearish note on Friday, with the benchmark KSE-100 Index dropping by more than 3700 points or almost 2% at close.

According to the PSX website, the market plunged to 184,129.58 points, a decrease of 3702.50 points or 1.97%, from the previous close of 187,832.08. 

Broad-based selling was seen across key sectors including fertiliser, cement, commercial banks, automobile parts and accessories, automobile assemblers, and oil and gas marketing companies.

On Wednesday, the KSE-100 had closed higher by 931 points at 187,832.08, marking the fourth consecutive session of gains. However, the market took a downturn on Friday, following global market trends.

The PSX had remained closed on Thursday in observance of Kashmir Day. 

Meanwhile, global equities extended losses into a third consecutive day, with the MSCI Asia-Pacific Index outside Japan falling by 1%. South Korea’s KOSPI index tumbled by 5%, triggering a brief trading halt. The S&P 500 e-mini futures dropped by 0.2%, and the Nasdaq e-mini futures fell by 0.4%.

Stocks have been under pressure as concerns grow that emerging AI models could affect profits in the software sector. The S&P 500 turned negative for the year, fueled by fears surrounding the labor market and a surge in layoffs, which reached the highest level in January in 17 years, according to a report from Challenger, Gray & Christmas.

Precious metals also faced volatility, with gold falling 0.1% to $4,764.43 and silver plunging 10% before recovering slightly to a 1.4% loss at $70.26.