PSX: Selling returns as KSE-100 loses nearly 1,400 points

Selling returned at the Pakistan Stock Exchange (PSX) amid escalating tensions in the Middle East, with the benchmark KSE-100 Index settling with a loss of nearly 1,400 points on Wednesday.

The benchmark index initially showed strength, climbing towards the 169,000 level during early trading, but failed to sustain the gains.

Selling pressure emerged through the late morning, pulling the benchmark lower towards the 168,300–168,400 area around midday. A brief recovery pushed the index back towards 169,000 in the early afternoon, but the rebound lacked momentum.

The market then came under renewed selling pressure in the final hours, with the KSE-100 falling to its intraday low of 167,849.70. The index recovered marginally towards the close but remained well below the previous session’s level.

At close, the KSE-100 Index settled at 168,021.80, down by 1,370.52 points or 0.81%.

“The local bourse remained firmly in the bears’ grip during today’s session, as elevated international oil prices and persistent regional tensions continued to weigh on investor sentiment,” said Topline Securities in its post-market commentary.

“Concerns over macroeconomic stability and external account pressures prompted investors to lock in gains, intensifying selling pressure across the market,” it added.

The brokerage house noted that selling pressure was further intensified by local institutional investors, who aggressively trimmed their positions amid heightened geopolitical uncertainty and growing concerns over a prolonged disruption in global oil markets.

“On the negative side, FFC, NBP, ENGROH, HBL, and LUCK emerged as the major drags, collectively weighing down the KSE-100 Index by approximately 706 points,” said Topline.

In a key development, Pakistan’s current account posted a deficit of $98 million in August 2026, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

On Tuesday, PSX staged a strong recovery as investors responded positively to the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 11.50%, triggering selective buying across major sectors and helping the market recover a substantial portion of the previous session’s losses.

The benchmark KSE-100 Index closed at 169,392.33 points, gaining 1,421.67 points.

Globally, stocks made tentative gains at the start of the Asian trading session on Wednesday as a rise in global bond yields and ​oil prices paused ahead of the Federal Reserve’s policy decision due later ‌in the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses after declining for four consecutive sessions and was last up 0.2%, led by a 0.8% gain in ​Korean shares.

S&P 500 e-mini futures nudged 0.1% higher.

Overnight on Wall Street, the ​S&P 500 slumped 0.5%, marking its second consecutive day of declines as ⁠the yield on the 10-year Treasury bond hit its highest level since 2007.

The yield on the US 10-year Treasury bond was 0.8 basis points ​lower at 4.9875% in Asian trade after breaching the 5% mark on Tuesday for ​the first time in three years, ahead of a rate decision from the Federal Reserve and ‌a ⁠media conference by Fed Chair Kevin Warsh.

Traders believe that a hike from the Federal Reserve is almost assured, pricing in an implied 92.4% probability of a 25-basis-point hike when it announces its policy decision, according to the CME Group’s FedWatch tool, compared to a ​59.4% chance a ​week ago.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01%, in the interbank market on Wednesday. The local unit closed the day at 277.27, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 356.14 million from 372.01 million recorded in the previous close.

However, the value of shares improved to Rs19.49 billion from Rs17.21 billion in the previous session.

WorldCall Telecom was the volume leader with 40.03 million shares, followed by Cnergyico PK with 21.57 million shares, and Media Times Ltd with 19.62 million shares.

Shares of 496 companies were traded on Wednesday, of which 121 registered an increase, 320 recorded a fall, and 55 remained unchanged.