PSX sheds 1,355 points amid geopolitical jitters

Benchmark index slips to 155,777 as investors stay on sidelines on risk-off mood

KARACHI:

The Pakistan Stock Exchange (PSX) extended its decline on Wednesday, shedding over 1,350 points, as persistent volatility and escalating geopolitical tensions kept investors on the sidelines despite relative resilience compared to a sharp regional sell-off.

The benchmark KSE-100 index swung within a wide intra-day band of 157,962 to 154,791 points, reflecting nervous participation and heightened risk aversion amid a broader downturn across Asian equities. According to brokerage assessments, while Pakistan fared better than some regional peers, notably South Korea's steep 12% plunge, the overall sentiment remained fragile, mirroring the global risk-off environment.

Index-heavy stocks, including Engro Holdings, UBL, NBP, HBL and Lucky Cement, dragged the benchmark lower, shaving off 891 points. However, the exploration and production (E&P) sector offered partial support as rising international oil prices lifted select energy names.

Market activity remained robust, with 623 million shares changing hands worth Rs30 billion. Unity Foods led the volumes with over 117 million shares traded, followed by K-Electric and Trust Securities & Brokerage (R). Of the 479 stocks traded, 201 advanced, 213 declined and 65 remained unchanged.

At the close of trading, the KSE-100 index posted a notable decline of 1,354.88 points, or 0.86%, and settled at 155,777.21.

Arif Habib Limited (AHL) noted that Pakistan equities witnessed a relatively benign session despite a sharp regional sell-off, with South Korea plunging 12% day-on-day, reflecting heightened risk aversion across Asian markets. In contrast, the local bourse displayed resilience as 59 shares advanced against 41 decliners.

The index's performance was supported by gains in Engro Fertilisers (+3.85%), Pakistan Petroleum (+2.33%) and Oil and Gas Development Company (+1.23%), which contributed the most to the upward momentum. On the downside, Engro Holdings (-3.07%), HBL (-3.70%) and UBL (-1.39%) weighed on the index, emerging as the key drags.

On the geopolitical front, sentiment remained cautious after a senior security official stated that Pakistan was in "no hurry" to conclude its military operation in Afghanistan, reiterating that the operation would continue until the militant groups targeting Pakistan from across the border were dismantled. Adding to concerns, the United States ordered non-emergency staff and family members at its consulates in Lahore and Karachi to depart, citing elevated risks of terrorist attacks.

From a technical standpoint, the index continues to hover around its 200-day moving average, a level that has historically served as a strong support zone and marked important cyclical bottoms, suggesting the market is at a critical inflexion point.

Topline Securities in its review stated that the KSE-100 index settled at 155,777, down 1,355 points, as persistent volatility kept investors cautious. The benchmark moved within a broad range of 157,962 to 154,791 during the session, reflecting nervous participation and intra-day swings.

Overall sentiment remained fragile amid escalating geopolitical tensions, which dampened global risk appetite. Regional Asian markets largely traded in the red and the local bourse followed the same negative trajectory, mirroring the broader risk-off environment. On the other hand, the E&P sector outperformed the broader market, as international oil prices moved higher in response to the ongoing conflict, lending support to energy stocks.

Index-heavy constituents such as Engro Holdings, UBL, NBP, HBL and Lucky Cement were the key laggards, collectively dragging the index down by 891 points, Topline said.

Among volume leaders, Unity Foods topped the chart with trading in 117.2 million shares, gaining Rs0.93 to close at Rs9.53. It was followed by K-Electric with 64.9 million shares, gaining Rs0.15 to close at Rs7.44 and Trust Securities & Brokerage (R) with 56.8 million shares, losing Rs0.02 to close at Rs0.22. Foreign investors sold shares worth Rs1.24 billion, the National Clearing Company reported.