PSX: Selling returns, KSE-100 down over 1%

Selling returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling with a loss of over 1% on Thursday.

After touching an intraday high of 172,491.16 in morning trade, the index reversed gains and witnessed sustained selling in the second half of the session.

The benchmark hit an intraday low of 170,418.38 during the final hour of trading, before recovering marginally.

At close, the benchmark index settled at 170,498.94, down 1,733.57 points or 1.01%.

“Following three consecutive sessions of gains, investors moved to lock in profits, resulting in a broad-based retreat that erased a substantial portion of the market’s recent advances,” said Topline Securities in its post-market commentary.

“Market sentiment remained fragile and risk-averse, amid heightened geopolitical tensions in the Middle East and renewed concerns over elevated global crude prices, with Brent crude trading above the US$100 per barrel threshold,” it added.

In a key development, Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the UN General Assembly 2026, on the same day as an IMF mission started discussions with Pakistani authorities for the next review under the $7-billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

According to a statement from the PM’s office, PM Shehbaz thanked the IMF for its continued support for Pakistan’s economy and reaffirmed his government’s unwavering commitment to successfully implementing the IMF-supported reform programme.

Meanwhile, Georgieva posted on X that she met with the prime minister to discuss Pakistan’s reforms: “Strong implementation has helped preserve stability, restore confidence and regain market access.”

On Wednesday, the PSX rallied strongly as constructive US-Iran discussions, the arrival of an International Monetary Fund (IMF) staff mission for key programme reviews, and aggressive buying in refinery stocks amid expectations of progress on long-awaited upgrade agreements boosted investor sentiment.

The benchmark KSE-100 Index gained 830.43 points, or 0.48%, to close at 172,232.51.

Globally, debt markets were on edge on Thursday, as Japanese bonds followed Treasuries lower, while ​Asian equities were mixed as investors weighed simmering Middle East tensions and prospects for talks between the United States and ‌China.

As Tokyo markets reopened after a three-day holiday, the benchmark 10-year Japanese government bond yield jumped to a 30-year high after a steep sell-off in the US market overnight.

Oil prices eased from recent highs and the greenback held gains after Tehran’s leader vowed to never surrender following a warning by US President Donald Trump that he could “annihilate” Iran.

Market ​participants looked ahead to a series of central bank speeches and economic releases, including U.S. jobless claims, for signals on future interest ​rate hikes.

A summit between Trump and Chinese President Xi Jinping was also in focus, with hopes for progress on ⁠trade relations.

The MSCI Asia ex-Japan index fell 0.64%, while Japan’s Nikkei 225  rose 1.73%. Australian shares hit a more than three-month low, with the benchmark S&P/ASX 200 index falling 1.2%.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01% in the interbank market on Thursday. The local unit closed the day at 277.17, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 759.97 million from 773.59 million recorded in the previous close.

However, the value of shares jumped to Rs27.54 billion from Rs26.45 billion in the previous session.

Cnergyico PK was the volume leader with 158.26 million shares, followed by K-Electric Ltd. with 71.89 million shares, and F. Nat. Equities with 59.94 million shares.

Shares of 495 companies were traded on Thursday, of which 101 registered an increase, 358 recorded a fall, and 36 remained unchanged.