The Pakistan Stock Exchange (PSX) experienced significant turbulence at the beginning of Wednesday’s trading session, as the benchmark KSE-100 Index sharply declined by nearly 1,000 points within the initial minutes. This sudden sell-off triggered concerns among investors and market watchers about the near-term trajectory of the equity market.
By 10:35 am, the KSE-100 Index had dropped 984.11 points, representing a decline of 0.74%, settling at 132,419.08. The downward pressure was broadly felt across several key sectors, including commercial banks, fertilizer producers, oil and gas exploration companies, and refineries.
Major stocks that heavily influence the index’s performance such as Attock Refinery Limited (ARL), National Refinery Limited (NRL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL) all traded in the red.
Financial institutions were also hit hard during the early trading hours. Leading banks including MCB Bank, Meezan Bank, and United Bank Limited (UBL) saw their share prices decline amid the overall bearish sentiment. This broad-based selling pressure reflects a cautious outlook among investors, who remain uncertain about the local and global economic environment.
The sharp decline in Wednesday’s session came on the heels of a volatile trading day on Tuesday. During that session, the KSE-100 Index experienced swings between gains and losses but ultimately closed nearly flat at 133,403.19, marking a marginal increase of only 33 points, or 0.02%.
The lack of decisive movement in the previous session perhaps foreshadowed the unsettled trading environment that followed.
International developments also played a role in influencing investor sentiment on the Pakistan Stock Exchange. The US dollar remained near a two-and-a-half-week high against major currencies on Wednesday, a factor that can affect emerging markets through capital flows and currency volatility.
Additionally, copper prices surged to record highs overnight, following US President Donald Trump’s announcement of intensified trade tensions.
Trump threatened to impose a 50% tariff on copper imports, which sent shockwaves through global commodity markets and contributed to the overall risk-off sentiment among investors.
The combination of domestic market volatility and uncertain global conditions continues to challenge the Pakistan Stock Exchange, with investors closely monitoring geopolitical developments, trade policies, and economic indicators to gauge the market’s direction in the coming days.
