The Pakistan Stock Exchange came under heavy selling pressure on Thursday, with the benchmark KSE-100 Index falling 1,421.85 points, or 0.86 per cent, to 164,509.13 by midday. The PSX KSE-100 plunge wiped out the gains from the previous session and pushed the index toward its intraday low.
The benchmark had closed Wednesday at 165,930.98 after rising 779 points on selective institutional buying. Thursday’s session opened near the intraday high of 166,180.32 before sellers took control, dragging the index to a low of 164,186.90.
PSX KSE-100 plunge: where the selling hit hardest
Selling was broad but concentrated in index-heavy sectors. Oil and gas exploration companies, oil marketing companies, power generation, cement, automobile assemblers and refineries all traded lower.
Heavyweight names including OGDC, PPL, MARI, HUBCO, PSO, HBL and UBL slipped, pulling the benchmark down with them. Trading volume stood at 60.55 million shares, with a traded value of Rs5.11 billion by midday, a moderate level for a session that saw such a sharp point decline.
By early afternoon, the index was trading near its session low, and the broader market reflected a cautious mood. The market remained open, with the final direction depending on how the remaining trading hours unfolded.
Why the mood turned: from diplomacy hopes to caution
The drop reversed Wednesday’s rebound, which had been supported by institutional buying and optimism around diplomatic efforts on the US-Iran front along with the draft Auto Policy 2026-31.
That context matters. The market is caught between two narratives. On one side, the IMF has warned that the Iran conflict could contract regional output by 1.3 per cent in 2026, with energy price risks squarely in focus. On the other, the World Bank expects Pakistani inflation to climb to 8.2 per cent next fiscal year, which shapes expectations for interest rates and corporate earnings.
Investors are also watching the fuel-price front. The government meets Jamaat-e-Islami’s negotiating committee on Friday over the petroleum levy, and any movement on fuel pricing feeds directly into inflation expectations that markets price in.
The honest reading is that Thursday’s fall looks like a correction after a relief rally rather than a verdict on the economy. The 779-point gain on Wednesday was itself built on selective buying, not broad conviction. A single session of profit-taking, especially in energy and banking heavyweights, can move the index by this much without signalling a trend change.
Frequently asked questions
How much did the KSE-100 fall on Thursday?
The KSE-100 Index fell 1,421.85 points, or 0.86 per cent, to 164,509.13 by midday, after opening near its intraday high of 166,180.32 and sliding to a low of 164,186.90.
Which sectors were hit hardest?
Oil and gas exploration, oil marketing companies, power generation, cement, automobile assemblers and refineries all saw selling, with heavyweights like OGDC, PPL, MARI, HUBCO, PSO, HBL and UBL trading lower.
What caused the previous day’s gain?
Wednesday’s 779-point rise was driven by selective institutional buying and optimism around US-Iran diplomatic efforts and the draft Auto Policy 2026-31.
What is the trading volume?
Volume stood at 60.55 million shares with a traded value of Rs5.11 billion by midday, a moderate level for the session.
