The Pakistan Stock Exchange (PSX) witnessed a sharp reversal on Thursday as early gains were wiped out by intensive selling, triggered by renewed political uncertainty.
The benchmark KSE-100 index, which had climbed to the intra-day high of 151,250 points, tumbled later, hitting the low of 148,273. It closed the day at 149,235, down 1,356 points, or 0.90%.
The sell-off emerged after the Supreme Court accepted bail pleas of former prime minister Imran Khan in May 9 cases, which sparked uncertainty about the political outlook. Major pressure came from index-heavy sectors such as commercial banks, cement and fertiliser, which endured broad-based selling.
AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune that investor sentiment turned cautious amid political uncertainty following the Supreme Court's acceptance of Imran Khan's bail pleas in May 9 cases.
"Nevertheless, we expect falling interest rates amid the improving macroeconomic backdrop and stability in exchange rate to sustain the rally in equities," he commented and mentioned that the KSE-100 delivered a 29% return this year.
KTrade Securities wrote in its market wrap that the benchmark KSE-100 index started trading on a positive note but selling pressure emerged in the latter half following approval of Imran Khan's bail pleas by the Supreme Court.
Consequently, the index dropped to the intra-day low of 148,273 (-2,318 points) from the intra-day high of 151,250 (+659 points) and closed in the negative territory at 149,235 (-1,356 points).
Selling was observed in index-heavy sectors including commercial banks, cement and fertiliser, which contributed 818 points, 187 points and 128 points, respectively, to the market's decline, KTrade said.
Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib remarked that after three consecutive winning sessions, the PSX finally faced a wave of profit-taking, which dragged the KSE-100 into the red.
The day began on a strong footing, with the index touching the intra-day high of 151,250, reflecting the bullish momentum. However, political noise shifted the mood following media reports about the former PM securing bail. It triggered volatility and wiped out early gains, sending the market into a sharp downturn, he said.
Yet, the storm settled quickly as clarification that the ex-premier would remain behind bars helped calm sentiment. "It was a session where politics overshadowed fundamentals, turning optimism into caution, but late recovery hinted at the underlying resilience in investor confidence," Najib added.
JS Global analyst Muhammad Hasan Ather noted that the KSE-100 index closed sharply lower, shedding 1,356 points to settle at 149,235 as it cooled off from record highs. After touching the intra-day peak, profit-taking dominated trading amid the end of earnings season. The pullback was a healthy correction following a strong rally as investors locked in gains, he said.
Looking ahead, Ather wrote, while short-term volatility may persist, the broader trend remains positive, supported by improving macro indicators and a lower interest rate scenario.
Topline Securities said that the PSX session was marked by heightened intra-day volatility as the index rallied to the peak of 151,250 before retreating to the low of 148,273, largely driven by profit-taking. Gains in Searle, Oil and Gas Development Company and Systems Limited collectively added 210 points to the index, but it was offset by stocks of leading banks, which erased 636 points.
Overall trading volumes increased to 1.1 billion shares compared with Wednesday's tally of 667.8 million. Traded value stood at Rs55.8 billion. Shares of 480 companies were traded. Of these, 130 advanced, 323 dropped and 27 remained unchanged.
Fauji Foods was the volume leader with trading in 62.1 million shares, gaining Rs0.52 to close at Rs16.94. It was followed by Pak Elektron with 57.2 million shares, rising Rs3.03 to close at Rs45.36 and Telecard Limited with 56.9 million shares, up Rs0.23 to close at Rs8.34. Foreign investors sold shares worth Rs479 million, the National Clearing Company reported.
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