PSX down 2,406 points amid risk-off mood

The benchmark KSE-100 index on Thursday came under selling pressure, plunging more than 2,400 points as a risk-off sentiment gripped the stock market amid geopolitical uncertainty and weak investor confidence.

By the close of trading, the index dropped to near 169,175, with broad-based declines across key sectors and heavyweights dragging the market lower despite some late-session buying at attractive valuations. The KSE-100 posted a significant decline of 2,405.93 points, or 1.40%, and ended the day at 169,173.38.

Arif Habib Limited (AHL) noted that the Pakistan Stock Exchange (PSX) experienced a bearish session as the KSE-100 index fell by 1.40%. The market faced significant pressure throughout the day, driven by declining shares where only 18 stocks rose against 82 losers.

Major index drags included FFC (-1.94%), UBL (-1.99%) and Meezan Bank (-2.32%). This downturn brought the week-to-date return to -2.7%, pushing the index into a support zone between 165k and 170k, where some late demand began to emerge. Total traded value for the day stood at Rs30.8 billion ($110.6 million).

The banking sector saw heavy activity due to Q1CY26 earnings reports, which showed mixed results. Bank Alfalah reported a significant 55% YoY increase in earnings per share (EPS) to Rs3.48, while MCB saw an 11% YoY decline to Rs11.07. Meanwhile, the energy sector remained in focus as geopolitical tensions in the Strait of Hormuz threatened to push oil and gas prices higher. In response, Pakistan announced the formation of a high-level committee to establish strategic petroleum reserves to mitigate global oil price shocks. On the corporate front, Sitara Petroleum Service announced an IPO, seeking to raise Rs4.8 billion for expansion, with the book-building process scheduled for early May, AHL stated.

Topline's market review mentioned that bears returned to the centre stage as tensions flared around the Strait of Hormuz, where reports of blockades and vessel seizures rattled global sentiment. Meanwhile, Islamabad continued to await Iranian and American officials for expected peace talks, keeping uncertainty elevated.

Amid the risk-off mood, the benchmark index plunged to the intra-day low of 3,163 points before settling at 169,173, down 2,406 points (-1.40%), as broad-based selling gripped the market. Key index heavyweights, including FFC, UBL, Meezan Bank, PPL, and Bank Alfalah, remained under sustained pressure, collectively shaving off 942 points. Trading activity stayed relatively subdued, with volumes clocking in at 1,321 million shares valuing at Rs30.8 billion, Topline said.

Nawaz Ali of JS Global noted that bears dominated the trading floor as investors remained cautious, awaiting positive developments on the geopolitical front. The benchmark KSE-100 index closed with a loss of 2,406 points, settling at 169,173. During the day, the index fell to the low of 168,416, down 3,163 points, before a partial recovery emerged, driven by buying at lower levels. Looking ahead, the market is expected to consolidate, with any significant developments in the US-Iran situation likely to influence investor sentiment and overall market direction.

Trading volumes on the ready market were recorded at 1.32 billion shares compared with the previous session's tally of 1.05 billion. The value of shares traded during the day was Rs30.84 billion.

Shares of 483 companies were traded. Of these, 164 stocks closed higher, 286 fell, and 33 remained unchanged.

First National Equities was the volume leader with trading in 286.8 million shares, gaining Rs0.32 to close at Rs1.70. It was followed by Hascol Petroleum with 77.8 million shares, gaining Rs1.12 to close at Rs20.51, and Kohinoor Spinning with 69.4 million shares, gaining Rs0.24 to close at Rs6.43. Foreign investors bought shares worth Rs727 million, the National Clearing Company reported.