PSX plunges over 6,000 points

The Pakistan Stock Exchange (PSX) witnessed a bloodbath sell-off after a recent period of buoyancy and closed on a decisively bearish note on Thursday, with heavy selling pressure dragging the benchmark KSE-100 index down by more than 6,000 points to 182,338. Investors were rattled by escalating tensions in the Middle East and disappointing corporate earnings, which combined to trigger panic-driven selling across the board.

The steep decline was largely attributed to a negative reaction to Fauji Fertiliser Company Pakistan's (FFC PA) CY25 results, which fell short of market expectations and prompted broad-based selling in key index heavyweights. Market breadth remained decisively negative, with decliners overwhelmingly outnumbering advancers, reflecting fragile confidence and a clear risk-off stance. Analysts said the breach of key technical support levels further exacerbated selling pressure, keeping the market under sustained downside stress throughout the session.

"Escalating tensions between Iran and the United States dampened investor sentiment, triggering widespread profit-taking as investors opted for a wait-and-see approach," said Waqas Ghani Kukaswadia Research Head at JS Global. The benchmark KSE-100 index closed at 182,338, down sharply by 6,042 points or 3.21% on a day-on-day basis. The decline was primarily driven by FFC, which alone shaved 1,902 points off the index.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said 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 and triggered widespread risk aversion among investors.

At the close of trading, the benchmark index had fallen 6,042.27 points, or 3.21%, to settle at 182,338.12. Arif Habib Ltd noted a strong downside move, with the decline driven mainly by FFC PA's disappointing CY25 earnings, which weighed heavily on investor sentiment. Market breadth was sharply negative, with only two shares advancing against 96 declines.

FFC PA, UBL PA and ENGROH PA contributed the most to the index's fall, with FFC PA declining 9.93%, UBL PA 2.82% and ENGROH PA 4.27%. FFC PA reported CY25 earnings per share of Rs51.69, reflecting a 14% year-on-year increase, while fourth-quarter CY25 profit rose 12% year-on-year to Rs15.9 billion, translating into EPS of Rs11.19. The company also announced a CY25 dividend per share of Rs37.0, up from Rs34.86 last year, and a 4QCY25 dividend of Rs8.5. However, both earnings and payouts came in below expectations, triggering a negative market reaction.

Separately, Federal Minister Ahsan Iqbal stated that the Pakistan-China partnership has entered a new phase, with a target of mineral exports worth $6-8 billion annually. On the technical front, analysts noted that near-term support at the 185,000 level had been breached, placing the market in a 180,000-190,000-consolidation range. Heading into the final session of the week, the KSE-100 was down 3.61%, indicating sustained downside pressure and fragile sentiment.

The Topline Securities market review said the local bourse witnessed a highly volatile session as futures rollover week pressure kept investors on edge. Despite sharp intraday swings, the index briefly surged to an intraday high of 981 points before volatility returned. Buying interest in heavyweight stocks such as UBL, PPL, PIOC, OGDC and POL provided intermittent support, while profit-taking in FFC, MARI and HUBC capped any recovery attempt.

Overall trading activity reflected weak sentiment. Some 933.10 million shares were traded in the ready market compared with 953.92 million in the previous session, while the value of shares traded stood at Rs66.41 billion. Shares of 487 companies were traded, of which 83 closed higher, 364 fell and 40 remained unchanged. K-Electric led volumes, while foreign investors sold shares worth Rs1.4 million, according to the National Clearing Company Limited.