PSX Suffers Sharp Decline as KSE-100 Falls 1,286 Points to Close at 163,304

The Pakistan Stock Exchange (PSX) witnessed a broad-based sell-off on Thursday as the KSE-100 Index slipped 1,286 points, closing at 163,304, amid persistent pressure in banking and energy stocks. The index fluctuated between an intraday high of 165,026 and a low of 163,042, reflecting weak investor sentiment throughout the session.

Overall market activity remained subdued, with 424.2 million shares traded, amounting to a total value of PKR 22 billion.

Key drags on the benchmark index included major banking stocks such as United Bank Limited (UBL), which declined 1.6% (-185 points); Bank AL Habib Limited (BAHL), down 3.2% (-166 points); Meezan Bank Limited (MEBL), which shed 2.1% (-146 points); Habib Bank Limited (HBL), down 1.7% (-106 points); and Bank of Punjab (BOP), falling 5.6% (-103 points).

On the volume front, K-Electric (KEL) and Bank of Punjab (BOP) led the activity charts, recording 194.9 million and 62.4 million shares, respectively.

Sector-wise, the Banking, Refinery, and Cement sectors experienced the most notable selling pressure, while Fertilizer and Oil sectors saw mixed investor participation amid selective buying at lower levels.

Market analysts attributed the ongoing volatility to corporate result season adjustments, as investors reassess earnings reports and future guidance.

Despite the current correction phase, the medium- to long-term outlook for the equity market remains optimistic, supported by expectations of continued strong corporate profitability and favorable dividend yields. Investors are encouraged to maintain focus on fundamentally robust sectors such as Exploration & Production (E&Ps), Oil Marketing Companies (OMCs), Fertilizers, and Banks, which continue to present solid growth and income opportunities.