KARACHI:
The Pakistan Stock Exchange (PSX) ended Thursday’s session in the red, as early gains driven by hopes of economic reform were reversed by geopolitical uncertainty and profit-taking. The benchmark KSE-100 index dropped 463.34 points, or 0.38%, to close at 120,002.59 — just above the key psychological mark of 120,000.
The market opened with strong bullish momentum, buoyed by the federal cabinet’s approval of a Rs1.2 trillion circular debt restructuring plan aimed at easing financial pressure in the power sector. The announcement sparked a wave of investor optimism, particularly boosting interest in key energy stocks such as OGDC, PPL, PSO, and Hub Power.
However, sentiment quickly turned following reports of Iranian missile strikes on Israel, which rattled investors and led to a sharp sell-off across multiple sectors. Fertiliser and cement stocks bore the brunt of the downturn, while the banking sector remained relatively resilient and offered limited support.
Ahsan Mehanti, Managing Director at Arif Habib Corp, attributed the market’s decline to fears of escalating Middle East tensions, alongside a weakening rupee and global market declines. “Panic selling took over as geopolitical risks spiked,” he noted.
Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the market had briefly surged to an intra-day high of 121,745 points, gaining as much as 1,279 points early on. But the bullish momentum fizzled out as investors reacted to news from the Middle East, with the index dipping to an intra-day low of 119,770 — down 696 points from the day’s peak.
According to KTrade Securities, the deteriorating geopolitical landscape overshadowed earlier optimism. “The market reversed its gains and extended losses, particularly in the oil, power, and cement sectors,” the firm reported. Volume also declined, with 598 million shares traded compared to 707.3 million a day earlier.
Topline Securities noted that while the federal cabinet’s circular debt plan had initially lifted the mood, the intensifying Israel-Iran conflict undermined investor confidence, resulting in a broad-based pullback. Despite support from banks — which contributed 203 points — declines in the power and cement sectors dragged the index down by 270 points overall.
Among key laggards were Pakgen Power, Engro Fertilisers, Engro Holdings, Lucky Cement, and Mari Petroleum. On the other hand, UBL and other banks helped cushion the impact.
In total, 459 companies’ shares were traded. Of these, 155 closed higher, 269 declined, and 35 remained unchanged. Trading volumes stood at 604.5 million shares. WorldCall Telecom led the volume chart with 64.6 million shares traded, slipping Rs0.01 to close at Rs1.49. It was followed by Sui Southern Gas (35.6 million shares, down Rs0.96 to Rs43.28) and First Prudential Modaraba (30.3 million shares, down Rs0.30 to Rs4.31).
Foreign investors offloaded equities worth Rs7.6 million, according to data from the National Clearing Company of Pakistan.
The session’s volatility underscored the fragility of investor sentiment in a market sensitive to both domestic policy moves and global flashpoints.
