KARACHI: The Pakistan Stock Exchange (PSX) suffered a sharp reversal on Wednesday as the KSE-100 index plummeted 4,626.18 points, or 2.48 per cent, to close at 181,629.37, down from the previous close of 186,255.55, amid a wave of selling across the market, as renewed geopolitical tensions resulted in panic selling.
The index touched an intraday high of 185,215.56 and a low of 179,504.35. The KSE-30 index shed 1,392.96 points to close at 54,279.48.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX witnessed a bearish session. The market opened on a positive note. However, sentiment turned sharply negative after the US president said that the “ceasefire is over” following an exchange of strikes involving US and Iranian forces.
The remarks sparked widespread panic selling, he said, dragging the index to an intraday low of 179,504 (-6,751 points; -3.62 per cent). Nevertheless, value hunters emerged in the final trading hours, engaging in selective buying that helped the market recover and close above the key psychological level of 180,000.
“The PSX once again finds itself under the shadow of geopolitical developments. Going forward, progress on the geopolitical front is likely to remain the key driver of market direction in the near term,” Najib said.
Ready market turnover surged 57.49 per cent to 1,551.04 million shares from 984.85 million shares in the previous session. Traded value jumped 36.6 per cent to Rs62.44 billion from Rs45.7 billion, while market capitalisation declined 2.27 per cent to Rs20.38 trillion from Rs20.86 trillion.
Market breadth was overwhelmingly negative, with 87 stocks advancing against 396 declining and 13 unchanged. Among the top gainers, Baba Farid Sugar Mills Limited rose Rs35.65 to close at Rs392.15, while Fateh Industries Limited added Rs35.47 to close at Rs390.13. On the downside, PIA Holding Company Limited shed Rs460.36 to close at Rs17,900, and Khairpur Sugar Mills Limited declined Rs191.14 to close at Rs1,720.29.
According to Topline Sales Desk, the local bourse witnessed a bloodbath, as panic selling gripped the market following renewed geopolitical tensions in the Middle East. Investor sentiment turned sharply negative after US President Donald Trump declared the ceasefire with Iran effectively over, while fresh US strikes on Iran reignited fears of a broader regional conflict. The escalation also pushed international crude oil prices higher, further dampening investor sentiment and triggering a broad-based risk-off move across the market.
The decline was also fuelled by broad-based profit-taking following the market’s recent rally, as investors opted to lock in gains despite an otherwise supportive macroeconomic backdrop. On the index contribution front, heavyweight stocks UBL, FFC, ENGROH, LUCK and HUBC emerged as the biggest drags on the benchmark, collectively shaving approximately 1,528 points off the index.
WorldCall Telecom led ready market turnover with 220.44 million shares, rising 6 paisas to close at Rs1.33, followed by Cnergyico PK with 111.67 million shares, rising 23 paisas to close at Rs8.72. Other most-traded stocks were K-Electric, LSE Capital Ltd, Pace (Pak) Ltd, Pak Refinery, BO Punjab, F Nat Equities, Maple Leaf and Hira Textile.In the futures market, 302 contracts were traded, with 27 increasing in value and 275 declining.
