PSX: KSE-100 plunges over 1,300 points amid selling pressure

After opening on a strong note, stocks at the Pakistan Stock Exchange (PSX) came under sustained selling pressure, gradually erasing early gains as the benchmark KSE-100 Index settled with a loss of over 1,300 points on Thursday.

The index opened near 170,000 and initially traded above that level, touching an intraday high of 170,688.38.

However, selling pressure gradually intensified, with the benchmark trending lower for most of the session. The index briefly recovered around midday and again during the final hour of trading, but failed to sustain those gains and slipped close to the day’s low of 168,567.78 near the end.

At close, the benchmark index settled at 168,636.85, down 1,332.47 points or 0.78%.

In a key development, the Federal Board of Revenue (FBR) extended on Wednesday the deadline for filing income tax returns for tax year 2026 from September 30 to October 15.

The PSX extended its recovery on Wednesday as selective buying in commercial banks, cement and fertiliser stocks supported the market, lifting the market. The benchmark KSE-100 Index gained by 368.92 points, or 0.22%, to 169,969.33 points.

Globally, Asian stocks were subdued on Thursday, and global bonds remained under pressure after a brutal September as investors weighed a slower-than-expected rise in US inflation ​in August that lessens the probability of a rate hike later this month.

Blockbuster earnings from AI chipmaker Micron failed to lift ‌the frayed mood in Asia, while stalling peace talks between the US and Iran to end the seven-month-long war in the Middle East kept oil prices elevated, further subduing sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%, with South Korea’s KOSPI easing 0.14%. Japan’s Nikkei though, was up over 1% as chip-related shares rose.

Futures for ​the Nasdaq and S&P 500 were up 0.3%. European stock futures slid 0.75% in early trading.

Data on Wednesday showed US inflation increased less than expected in August and price pressures were more moderate in the prior month than previously reported, leading traders to rein in ​wagers of a Federal Reserve rate ​hike on October 28.

Traders are now ⁠pricing in a 38% chance of a hike this month, versus 50% a day earlier, CME’s FedWatch tool showed. The Fed raised rates in September for the first time in three years, and flagged further increases in ​borrowing costs in the months ahead.