KARACHI: The Pakistan Stock Exchange (PSX) suffered a sharp reversal on Thursday, wiping out a significant portion of the previous session’s gains as broad-based selling gripped the market. The benchmark KSE-100 Index fell by 3,500.3 points, or 2.25 per cent, to close at 152,011.26 points, down from the previous session’s close of 155,511.57 points. The market sentiment turned negative following US President Donald Trump’s speech that dashed hopes for the de-escalation of geopolitical tensions in the Middle East.
The index touched a brief intraday high of 152,272.64 points before sellers dominated proceedings, driving it to a session low of 150,022.44 points. The KSE-30 Index declined by 1,180.47 points, or 2.5 per cent, to close at 45,975.85 points, against 47,156.33 points in the prior session.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX surrendered part of its previous session’s gains. The market opened on a weak footing, with sentiment turning negative after Trump’s early morning address to the American nation dampened de-escalation hopes. His reiteration that the US would continue to exert pressure on Iran until compliance with ceasefire conditions weighed on investor confidence, triggering broad-based selling.
On the macroeconomic front, Pakistan recorded a trade deficit of $2.7 billion in March, with exports declining by 14 per cent YoY to $2.3 billion and imports falling by 5.4 per cent YoY to $5 billion. Cumulatively, during 9MFY26, the trade deficit narrowed by 18.5 per cent YoY to $ 22.7 billion, reflecting an overall improvement in the external account position.
Index performance was dragged down by key heavyweights including UBL, FFC, MCB, HUBC, PPL, OGDC, LUCK, NBP, ENGROH and BAHL, which collectively eroded 1,994 points from the benchmark.
“Going forward, developments in the Middle East will remain a key driver for the KSE-100 index. Escalating tensions could weaken investor sentiment, trigger foreign outflows, and pressure cyclical sectors, while any signs of de-escalation may support recovery,” said Najib. “The unpredictable nature of geopolitical news is likely to drive volatility, resulting in cautious investor behaviour and short-term, sentiment-driven market movements in the near term.”
Trading activity contracted sharply. Shares traded in the ready market fell by 47.5 per cent to 352.272 million from 670.868 million in the previous session. Traded value plunged by 55.62 per cent to Rs19.512 billion from Rs43.979 billion. Market capitalisation declined by 1.93 per cent to Rs16.883 trillion from Rs17.215 trillion.
Of the 481 companies active during the session, only 99 closed in positive territory, 323 recorded losses, and 59 remained unchanged. Among the top gainers, Unilever Pakistan Foods Limited surged by Rs992.88 to close at Rs25,094.05 per share. Khairpur Sugar Mills Limited followed, gaining Rs24.54 to close at Rs269.94 per share.
On the declining side, PIA Holding Company Limited fell sharply by Rs482.5 to close at Rs15,017.5 per share. Bhanero Textile Mills Limited shed Rs88.27 to close at Rs806.73 per share.
According to Topline Sales Desk the local bourse remained under pressure, tracking the negative momentum in global markets after remarks by Trump on the ongoing Iran conflict dented investor sentiment. Escalating geopolitical tensions, coupled with a surge in oil prices, kept market participants on the back foot, reinforcing a cautious stance throughout the session.
K-Electric Ltd topped the volume table with 56.144 million shares traded, losing 11 paisas to close at Rs7.11 per share. WorldCall Telecom followed with 17.561 million shares, easing two paisas to close at Rs1.18 per share.
Other significant turnover stocks included BO Punjab XD, Cnergyico PK, Fauji Cement, F Nat Equities, Trust Brokerage, TRG Pak Ltd, Nishat ChunPower, and Telecard Limited.In the futures market, 311 companies recorded trading activity, of which only 25 advanced and 286 declined.
