A sharp sell-off marked trading at Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 index dived over 1,500 points. The market came under pressure in the wake of escalating Israel-Iran conflict and unease over Pakistan's weak economic indicators.
A day ago, the State Bank reported a $103 million current account deficit for May 2025 owing to a surge in imports. Stocks slipped across the board as investors also responded to the depreciating rupee, which amplified fears of inflation and fiscal imbalance.
Arif Habib Corp MD Ahsan Mehanti, in his brief note, wrote that stocks fell across the board amid elevated Middle East tensions and investor concerns over dismal economic data that showed a $103 million current account deficit for May due to surging imports. "Weak global equities and the falling rupee were among factors that triggered panic selling," he added.
At the end of trading, the benchmark KSE-100 index recorded a sharp drop of 1,505.11 points, or 1.23%, and settled at 120,465.93.
Arif Habib Limited Deputy Head of Trading Ali Najib commented that stocks underwent a negative day as the KSE-100 index closed at 120,466, translating into a decline of 1,505 points.
The day commenced on a positive note but it was short-lived. Selling headwinds grabbed the overall sentiment and threw the index into negative territory where it hit the intra-day low at 120,418 before close, he said.
In the evening on Wednesday, President Trump was scheduled to host Pakistan's army chief Asim Munir in Washington amid Pakistan's bid to mediate in the Middle East conflict.
Top five gainers were Engro Fertilisers, Meezan Bank, Agritech, Pakistan Aluminium Beverage Cans and Colgate-Palmolive, which collectively added 93 points. Conversely, Engro Holdings, Pakgen Power, Pakistan Petroleum, Mari Petroleum and UBL pulled the index down by 488 points, Najib added.
KTrade Securities, in its report, remarked that stocks remained under pressure over heightened Iran-Israel tensions, with the KSE-100 index falling by 1,505 points. Additionally, trading volumes were subdued at 704 million shares.
Sector-specific performance was broadly negative as banking, exploration & production, power, cement and tech segments posted notable losses. With regional risks persisting, KTrade suggested to investors to adopt a cautious approach in the near term.
Topline Securities reported that the stock market endured a lacklustre trading session, mirroring the nervous sentiment across global markets. Rising geopolitical tensions, particularly the standoff between Iran and Israel, weighed heavily on investor confidence. The atmosphere of uncertainty prompted a risk-averse approach, leaving the market directionless for most of the day, it said.
JS Global analyst Mubashir Anis Naviwala noted that the bourse remained under selling pressure throughout the session and closed deep in the red with a loss of 1,505 points.
Investor sentiment remained weak amid uncertainty, which led to very low market participation. The sharp decline reflected growing concerns about geopolitical risks and the economic outlook.
Naviwala advised investors to adopt a defensive approach and limit aggressive exposure while resorting to risk management in the current volatile environment.
Overall trading volumes decreased to 707.3 million shares compared with Tuesday's tally of 1.15 billion. The value of shares traded was Rs21.3 billion. Shares of 470 companies were traded. Of these, 102 stocks closed higher, 327 fell and 41 remained unchanged.
WorldCall Telecom was the volume leader with trading in 111 million shares, down Rs0.11 to close at Rs1.50. It was followed by First Prudential Modaraba with 51.7 million shares, gaining Rs0.74 to close at Rs4.61 and Pervez Ahmed Consultancy with 41.1 million shares, losing Rs0.73 to close at Rs3.15. Foreign investors sold shares worth Rs65 million, the National Clearing Company reported.
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