PSX dips 3,500 points amid risk-off mood

Stocks came under heavy selling pressure on Thursday as escalating geopolitical tensions and a surge in global oil prices rattled investor sentiment, triggering a broad-based sell-off at the Pakistan Stock Exchange. The benchmark KSE-100 index fell sharply, although it managed to stay above the key 150,000 level, with analysts attributing the decline to a risk-off mood following weakness in global markets.

At the close of trading, the KSE-100 index posted a sharp decline of 3,500.30 points, or 2.25%, and settled at 152,011.26. Arif Habib Limited (AHL) noted that the KSE-100 extended losses, falling 2.25% as heavyweight banking stocks came under pressure, although the index continued to hold above the 150,000 level. The decline comes a day after a strong rally, with analysts describing the latest session as a phase of consolidation.

Market breadth remained negative, with only 15 stocks advancing while 84 declined. TRG Pakistan (+10%), Attock Refinery (+1.83%) and Unity Foods (+4.12%) were the main positive contributors. On the flip side, United Bank (-3.52%), Fauji Cement (-1.72%) and MCB Bank (-4.34%) weighed heavily on the index, emerging as the top drags.

Trading activity remained moderate, with total traded volumes in the regular market standing at 352.3 million shares, while the traded value hit Rs19.5 billion. Among the top traded stocks by value, Lucky Cement, Pakistan Petroleum, OGDC and National Bank featured prominently, reflecting continued investor interest in energy and banking sectors.

On the economic front, Pakistan posted a trade deficit of $2.7 billion in March 2026 as exports declined 14% year-on-year to $2.3 billion while imports fell 5.4% to $5 billion. However, on a cumulative basis, the deficit for 9MFY26 narrowed 18.5% to $22.7 billion, indicating some improvement in external balances. Analysts expect the market to remain range bound in the final session of the week, where the 150,000 level is likely to act as a key support zone.

Topline Securities, in its review, stated that the local bourse remained under pressure, tracking the negative momentum in global markets after remarks by Donald Trump on the ongoing Middle East conflict dented investor sentiment. Escalating geopolitical tensions, coupled with a surge in oil prices, kept market participants on the back foot, reinforcing a cautious stance throughout the session.

Selling pressure prevailed across the board, which dragged the index to the intra-day low of 5,489 points. The market eventually settled at 152,011, marking a decline of 3,500 points and reflecting a clear risk-off sentiment amid the uncertain backdrop. The major negative contribution came from UBL, FFC, MCB, Hubco, PPL, OGDC and Lucky Cement, which cumulatively eroded 1,589 points, Topline said.

KTrade Securities stated that looking ahead, the market direction remained closely tied to geopolitical developments and oil price dynamics. A sustained upside in crude, particularly if Brent stays above the $100 mark, could further dampen investor confidence and extend the ongoing downside.

Overall trading volumes were recorded at 352.27 million shares compared with the previous session's tally of 670.87 million. The value of shares traded during the day was Rs19.51 billion.

Shares of 481 companies were traded. Of these, 99 stocks closed higher, 323 fell and 59 remained unchanged.

K-Electric was the volume leader with trading in 56.14 million shares, losing Rs0.11 to close at Rs7.11. It was followed by WorldCall Telecom with 17.56 million shares, losing Rs0.02 to close at Rs1.18 and The Bank of Punjab XD with 16.95 million shares, losing Rs1.33 to close at Rs25.19. Foreign investors bought shares worth Rs456.6 million, the National Clearing Company reported.