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The Pakistan Stock Exchange (PSX) suffered a historic fall on Thursday as the benchmark KSE-100 Index dropped over 6,000 points, closing at 182,338. Investor sentiment plunged amid escalating geopolitical tensions in the Middle East, coupled with disappointing corporate earnings that triggered widespread panic selling.
Shares of 345 companies were traded, with 75 closing higher, 254 declining, and 16 remaining unchanged. Market volumes stayed high at 925.5 million shares, generating a turnover of PKR 66.2 billion, showing that investors remained active despite panic selling.
Ali Najib, deputy head of trading at Arif Habib Ltd., explained, “Market sentiment deteriorated amid escalating geopolitical tensions in the Middle East, as war-related rhetoric between the US and Iran heightened fears of a broader regional conflict, triggering widespread risk aversion.”
Fauji Fertiliser Company (FFC) added to market pressure after its earnings fell below expectations due to margin compression. The absence of a higher dividend, stock split, or bonus issue disappointed traders, leading FFC to hit its lower circuit at 596.62, down 9.93%, shaving 1,902 points off the index.
Blue-chip stocks including UBL, ENGROH, OGDC, HUBC, PPL, LUCK, SYS, HBL, and MARI also faced heavy selling pressure, collectively pulling the index down by 2,116 points.
The KSE-100 Index breached the first support level at 185,000, touching an intra-day low of 181,961. Analysts suggest that 180,000 now acts as a strong support level, while a weekly close above 185,000 may signal a return of bullish momentum next week.
K-Electric (KEL) led the trading volumes with 104.1 million shares changing hands, highlighting active participation despite the market slump.
The PSX’s steep decline underscores the impact of global geopolitical events and corporate disappointments on local markets. Investors are advised to monitor support levels closely and remain cautious in the short term as international tensions continue to influence market behavior.
