Selling returns to bourse, KSE-100 sheds over 1,300 points

The Pakistan Stock Exchange (PSX) observed yet another volatile trading session, as the benchmark KSE-100 lost over 1,300 points on Wednesday.

Trading opened on a negative note with the KSE-100 seeing a sharp dip amid immediate selling pressure, dragging the benchmark index to an intraday low of 154,790.73.

However, the market made a strong comeback by mid-morning, pushing the KSE-100 towards an intraday high of 157,962.47.

Selling pressure resumed by early afternoon, dragging the benchmark index lower.

At close, the KSE-100 Index settled at 155,777.21, down by 1,354.88 points or 0.86%.

“Overall sentiment remained fragile amid escalating geopolitical tensions, which dampened global risk appetite,” said Topline Securities in a note.

The brokerage house shared that the local bourse followed the regional Asian markets, which largely traded in the red, mirroring the broader risk-off environment.

“On the other hand, the Exploration & Production (E&P) sector outperformed the broader market, as international oil prices moved higher in response to the ongoing conflict, lending support to energy stocks,” it added.

Index-heavy constituents—including ENGROH, UBL, NBP, HBL, and LUCK—emerged as key laggards, collectively dragging the index down by 891 points during the session, said Topline.

On Tuesday, PSX staged a powerful and confidence-restoring rebound as aggressive value buying in heavyweight sectors helped the PSX recover sharply from the previous session’s historic rout, signalling a decisive shift in market sentiment from panic to opportunity.

The benchmark KSE-100 Index climbed 5,159.10 points or 3.39% to close at 157,132.10 points.

Internationally, Asian markets skidded on Wednesday, with investors cutting crowded positions in gold and chipmakers on worries a wider Mideast war could deliver an energy shock that raises inflation and delays ​rate cuts.

Shares in Seoul dived 4% to take two-day losses beyond 11% as ‌fast-money and foreigners bailed out of a market that had soared on memory chipmakers’ vast AI-driven profits.

The selloff dragged the won to a 17-year low.

Japan’s Nikkei slid 2.5% in a third straight session of losses.

Japan and ​South Korea are major energy importers.

Benchmark Brent crude oil futures are up more than ​12% for the week at $81.40 a barrel, though they came off highs after ⁠US President Donald Trump ordered an insurance guarantee on Gulf shipping and said the navy ​may escort oil tankers through the Strait of Hormuz if necessary.

US and Israeli forces have pounded Iran ​for four days, and Iranian drones and missiles have struck Gulf oil refineries and also US embassies in Saudi Arabia and Kuwait.

On Wall Street, indexes pared their earlier losses, but the S&P 500 closed 0.8% lower amid fears of potentially prolonged higher oil prices.

Meanwhile, the Pakistani rupee registered a marginal gain, appreciating 0.01% against the US dollar, in the inter-bank market on Wednesday. At close, the local currency settled at 279.42, a gain of Re0.03 against the greenback.

Volume on the all-share index declined to 622.69 million from 770.69 million recorded in the previous close.

The value of shares decreased to Rs29.95 billion from Rs44.36 billion in the previous session.

Unity Foods Ltd was the volume leader with 117.21 million shares, followed by K-Electric Ltd. with 64.94 million shares, and Trust Sec. & Bro.(R) with 56.76 million shares.

Shares of 479 companies were traded on Wednesday, of which 201 registered an increase, 213 recorded a fall, and 65 remained unchanged.