KARACHI:
Pakistan Stock Exchange (PSX) witnessed a sharp sell-off on Thursday, with the benchmark KSE-100 Index plunging 3.41%, erasing the previous session’s gains amid rising geopolitical uncertainty and persistent technical weakness.
At close, the KSE-100 Index settled at 152,908, down 5,405 points, as broad-based selling pressure dominated market activity. Market breadth remained negative, with 92 stocks declining against just 7 advancers, reflecting weak investor sentiment, according to AHL.
Heavyweight stocks led the downturn, with UBL falling 7.07%, FFC shedding 2.84%, and Engro Holdings declining 3.97%, collectively dragging the index lower. Traded value in the ready market stood at $92.7 million, with volumes clocking in at 521.6 million shares.
Read: Stocks slide, oil gains with Mideast ceasefire prospects centre stage
Analysts attributed the bearish momentum primarily to escalating geopolitical tensions in the Middle East. Reports of indirect US-Iran engagement through backchannel diplomacy failed to reassure investors, as conflicting signals from both sides clouded expectations of any near-term de-escalation.
“Middle East developments continue to act as the primary trigger for equity markets, and the absence of a clear resolution path is keeping risk appetite subdued,” a market participant noted.
On the domestic front, the index’s failure to reclaim its 200-day moving average (200-DMA) has reinforced a consolidation phase, with the benchmark remaining largely flat on a week-on-week basis despite heightened volatility.
Additionally, policy developments added a mixed undertone to the market. The government’s plan to introduce a mobile application to manage fuel quotas for motorcycles, rickshaws, and small cars up to 800cc—aimed at providing targeted subsidies to low-income households—failed to provide any immediate positive trigger for equities.
Sector-wise, banking, cement, and exploration & production stocks remained under pressure. Among actively traded stocks, Sui Northern Gas Pipelines, WorldCall Telecom, and Pak Elektron Limited featured prominently in volumes.
Read More: PSX sheds over 5000 points as profit-taking grips market
On the flip side, select stocks posted gains, with Nestlé Pakistan, Packages Limited, and Bata Pakistan closing in positive territory, although their impact on the broader index remained limited.
Market participants expect continued volatility in the near term, with external factors—particularly geopolitical developments and global commodity price movements—likely to dictate direction. Analysts suggest that a decisive break above the 200-DMA is crucial for any sustained bullish momentum, while failure to do so may keep the market range-bound.
In the absence of strong local triggers, investors are expected to remain cautious, closely tracking global cues and macroeconomic signals.
