KSE-100 index succumbs to relentless selling as recovery hopes dash investor sentiment
KARACHI:
Recovery hopes were dashed as heavy selling gripped the environment at Pakistan Stock Exchange (PSX) in a turbulent session on Thursday, with bears firmly in control throughout the day. Heavy selling from the opening bell dragged the benchmark KSE-100 index sharply lower, reflecting cautious investor sentiment.
The index plunged during intra-day trade, hitting a session low of 178,725.25 points amid broad-based selling across key sectors. Although a late-session recovery trimmed some losses, it failed to reverse the negative momentum.
By the close, the KSE-100 index tumbled down 2,537.16 points, or 1.39 % and closed at 180,512.65 points.
Market participation remained active, but declining stocks outpaced advancing ones, highlighting continued risk-averse behaviour among investors.
Overall, the session underscored persistent selling pressure, with traders opting to reduce exposure despite a modest late rebound.
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KTrade Securities equity trader Ahmed Sheraz commented that PSX extended its bearish momentum on Thursday with the KSE-100 index closing at 180,512 points, down 2,537 points (-1.39% DoD). Selling pressure remained broad-based throughout the session, with no visible signs of strength or meaningful recovery.
Heavyweight sectors including commercial banks, oil and gas, technology, cement, and power all contributed negatively to the index performance. Major blue chips such as Pakistan Petroleum Limited, Engro Fertiliser, Hub Power, Systems Limited, Oil & Gas Development Company, Engro Holdings, MCB Bank, National Bank, and Bank Al Falah remained under pressure, reflecting weak overall sentiment across the board, he said
Market participation stayed moderate, with volumes recorded at 448 million shares. On the corporate front, EFERT announced a dividend of Rs4 per share with 4Q earnings of Rs6.26 per share, both below market expectations. The company cited one-off taxation impact and product discounts offered to maintain market share as key reasons for the weaker-than-expected results.
Given the prevailing geopolitical and local uncertainties, along with uninspiring corporate earnings, the overall tone remains fragile. “We expect the market to remain sideways to negative in the near term, with investors advised to stay selective in quality blue-chip names and maintain a cautious, calculated approach,” Sheraz added.
Overall trading volume increased to 873.9 million shares compared with Wednesdays tally of 734.6million. The value of traded shares stood at Rs41.7billion. K-Electric remained the volume leader with trading in 177million shares, falling Rs0.38 to close at Rs8.22.