Equities hammered on regional tensions

KSE-100 suffers record 6,683-point plunge amid US-Iran row, Ramazan-thinned trade

KARACHI:

Pakistan equities witnessed a historic carnage on Thursday as the benchmark KSE-100 index plunged over 6,680 points, its steepest single-day fall on recent record, amid relentless selling pressure, Ramazan-curtailed trading hours and persistent foreign outflows.

The market briefly reeled to the intra-day low of over 7,200 points before paring some losses by the close, with index heavyweights Fauji Fertiliser Company, Engro Holdings, UBL, OGDC, Pakistan Petroleum and Meezan Bank collectively shaving 2,100 points off the benchmark.

The session was marked by extreme volatility and a broad-based decline, exacerbated by local institutional selling, particularly from insurance companies, alongside continued foreign corporate disposals that kept buyers sidelined. Brokerage houses described the move as an aggressive sell-off, pushing the index towards the key 170,000 support zone, as they noted a risk-off stance driven by regional tensions.

Trading activity remained subdued on the first day of Ramazan, with volumes dropping to 542.98 million shares worth Rs27.36 billion. Market breadth was overwhelmingly negative as 384 of the 483 traded stocks closed lower while only 32 advanced.

"Investor sentiment deteriorated markedly amid escalating geopolitical tensions between the United States and Iran as renewed hostilities heightened global uncertainty," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL).

At the close of trading, the benchmark KSE-100 index posted a sharp decline of 6,682.81 points, or 3.74%, and settled at 172,170.29.

"A carnage was witnessed at the local bourse," noted Topline market review as the KSE-100 index suffered its steepest single-day fall in history. The benchmark plunged 6,683 points, after touching the intra-day low of 7,205 points in a session marked by relentless selling and extreme volatility.

The pressure was largely attributed to persistent foreign corporate selling, which continued to dampen sentiment and keep investors on the sidelines. Adding to the negative tone, Wednesday's data showed that local insurance companies were the major sellers.

Market activity was further constrained by shortened trading hours, which curtailed participation and amplified price swings amid thin volumes. Index-heavy constituents Fauji Fertiliser, Engro Holdings, UBL, OGDC, Pakistan Petroleum and Meezan Bank led the decline, collectively eroding 2,113 points from the benchmark.

AHL reported an aggressive sell-off at the Pakistan Stock Exchange, with the KSE-100 declining 3.7% day-on-day and moving closer to the key 170,000 level. Market breadth remained sharply negative as only three index constituents advanced while 93 declined. The largest drags on the index came from Fauji Fertiliser (-3.26%), Engro Holdings (-3.76%) and UBL (-2.38%).

On the corporate front, Faysal Bank announced CY25 earnings of Rs22.5 billion (EPS: Rs14.80), down 6% year-on-year, while quarterly profit stood at Rs6.5 billion, up 83% YoY and 17% QoQ. The bank also declared a cash dividend of Rs2 per share, taking the cumulative CY25 payout to Rs6.5 per share.

During the day, foreign investors sold shares worth Rs135 million, the National Clearing Company reported.