Stocks dumped as PSX dives over 3,000 points

KSE-100 index falls below 170k over oil price surge, US-Iran tensions

KARACHI:

The benchmark KSE-100 index tumbled over 3,000 points at the Pakistan Stock Exchange (PSX) on Thursday, slipping below the psychologically important 170,000 level and matching July lows as investors dumped stocks following the surge in global oil prices and renewed US-Iran attacks.

Market breadth was extremely weak, with 406 stocks declining against only 58 gainers. Volumes rose to 629 million shares worth Rs27 billion. At the close of trading, the KSE-100 posted a decline of 3,078.56 points, or 1.79%, and settled at 168,865.04.

Arif Habib Limited (AHL) noted that the KSE-100 index posted an aggressive 1.79% decline, breaking below the psychologically important 170,000 level and arriving at July lows that technical analysts had earlier identified as a target. Breadth was extremely weak as only three stocks advanced while 95 declined.

The modest positive contributors were Pakistan Services (+1.53%), Atlas Honda (+0.19%) and Kohat Cement (+0.13%). The heaviest drags were Meezan Bank (-3.58%), Pakistan Petroleum (-3.05%) and Fauji Fertiliser Company (-1.67%). Geopolitical risk featured prominently, with remarks that Iran stood ready for a more intense conflict should the United States escalated strikes on its territory, mentioned AHL.

Domestically, media reports indicated that Prime Minister Shehbaz Sharif had approved a draft five-year automobile policy, offering substantial tax incentives for new energy vehicles while protecting existing assemblers. Corporate news included Interloop Ltd's FY26 results, which showed earnings per share of Rs9.38, a 144% year-on-year increase, together with a dividend of Rs4. "Overall price action remained technically weak, leaving the market vulnerable to further downside if support at the July lows fails to hold," added AHL.

Topline's market review noted that the local bourse came under heavy selling pressure as renewed US-Iran attacks shattered investor confidence, while a sharp surge in international oil prices further amplified concerns over inflation, the external account, and overall macroeconomic stability.

The KSE-100 index plunged 3,079 points (-1.79%) to close at 168,865, after hitting the intr-aday low of 3,471 points, reflecting broad-based risk-off sentiment across the market. Selling by local institutional investors further intensified the pressure, as investors aggressively trimmed positions amid heightened geopolitical uncertainty and fears of a prolonged disruption in global oil markets.

Meezan Bank, FFC, PPL, OGDC, and Hubco were among the major contributors to the index's decline, collectively dragging the KSE-100 down by approximately 1,004 points. Market participation remained active, with total traded volume reaching 629 million shares. Cnergyico emerged as the volume leader, said Topline.

Overall trading volume was recorded at 629 million shares compared with the previous session's tally of 478 million. The value of shares traded during the day was Rs27 billion.

In the ready market, shares of 499 companies were traded. Of these, 58 stocks closed higher, 406 fell, and 35 remained unchanged.

Cnergyico Pk was the volume leader with trading in 99 million shares, losing Rs0.69 to close at Rs12.37. It was followed by Tasdeeq Information with 41 million shares, gaining Rs0.27 to close at Rs4.24, and Media Times with 29 million shares, losing Rs0.13 to close at Rs6.70. Foreign investors sold shares worth Rs80.9 million, the National Clearing Company reported.