KARACHI:
A lack of optimism coupled with futures rollover headwinds kept investors on the defensive as the Pakistan Stock Exchange (PSX) logged its third consecutive decline in the current week amid selling pressure.
In the morning on Wednesday, trading commenced on a positive note, with the KSE-100 index briefly climbing to the intra-day high of 168,192. However, the recovery proved fragile. As the session progressed, stock selling resurfaced, keeping the market confined within a narrow range through late morning.
Pressure intensified around midday as investors trimmed positions amid rollover contract-related adjustments. The index subsequently slipped to the intra-day low of 164,229, reflecting weakness across key sectors such as banking, cement and oil & gas. The benchmark KSE-100 index endured a volatile session, ultimately shedding 1,632.25 points, or 0.98%, to settle at 164,626.29.
Topline Securities wrote that the KSE-100 posted a decline of 1,632 points amid sustained market volatility. The benchmark traded within a range of 168,192 and 164,229, primarily impacted by weak investor sentiment and futures rollover pressure. Index-heavy constituents including United Bank, Engro Holdings, Pakistan Petroleum, Lucky Cement and DG Khan Cement emerged as key laggards, collectively wiping off 928 points, it said.
KTrade Securities mentioned in its market wrap that the KSE-100 extended its decline, closing down by 1,632 points (-0.98%) as selling pressure once again dominated the session. The index swung nearly 4,000 points intra-day, touching the high of 168,192 before dropping to 164,229, and settled near the day’s low, reflecting sustained selling.
Positive triggers, including corporate earnings, failed to lift sentiment. Maple Leaf Cement posted results in line with expectations while National Bank announced strong earnings along with a dividend of Rs35 per share, yet the market continued to sell into strength.
The inability to sustain early gains underscored fragile investor confidence. Index heavyweights including United Bank, Engro Holdings, Pakistan Petroleum, Lucky Cement, DG Khan Cement, Oil & Gas Development Company, Bank AL Habib and Mari Energies weighed on the performance, while NBP, MCB Bank, Bank Alfalah and Fatima Fertiliser provided limited support, it said.
Reports of foreign selling, particularly in DG Khan Cement and The Searle Company, coupled with margin calls and the T+1 settlement transition added to liquidity stress. With the 165k level breached, the near-term outlook remains cautious. Volatility may persist amid foreign outflows and geopolitical uncertainty, KTrade predicted.
Arif Habib Limited (AHL) observed that there was another 1% decline for the KSE-100 to close below 165k. A total of 32 shares rose while 68 fell with NBP (+4.27%), MCB (+2.5%) and Bank Alfalah (+4.42%) being the biggest upside contributors. On the flip side, UBL (-2.7%), Engro Holdings (-3.04%) and Pakistan Petroleum (-3.23%) were the largest index drags.
In corporate news, National Bank reported CY25 earnings per share (EPS) of Rs39.9, up 227% year-on-year, and also announced highest-ever dividend of Rs35 per share. UBL announced CY25 EPS of Rs54.48, +82% YoY, and dividend of Rs29.5. Additionally, Airlink Communication (-2.95%) reported 1HFY26 EPS of Rs7.73, up 32% YoY, and dividend of Rs2, which had already been paid.
The decline in the KSE-100 has now extended to -14%, similar to the April-May decline in 2025, and is now again approaching the 200-day moving average, which has supported the index since the start of the rally from 40k and is currently just under the 160k level, AHL added.
Overall trading volumes decreased to 620 million shares compared to Tuesday’s tally of 688 million. The value of traded shares stood at Rs29 billion.
Foreign investors sold shares worth Rs368 million, the National Clearing Company reported.
