The KSE-100 index drops 2,500 points on Thursday as heavy selling pressure swept across the Pakistan Stock Exchange (PSX). Hopes of a sustained recovery faded as the benchmark index closed deep in negative territory.
Although trading began on a steady note, the market slipped within the first hour. Selling intensified through midday, pushing the index to an intra-day low of 178,725 before a late-session recovery trimmed losses.
By the close, the KSE-100 had fallen 2,537.16 points, or 1.39%, settling at 180,512.65.
The KSE-100 index drops 2,500 points as bearish momentum extended across major sectors. Analysts noted that commercial banks, oil and gas, technology, cement, and power stocks all contributed negatively.
Heavyweights, including Pakistan Petroleum, Engro Fertilisers, Hub Power, Systems Limited, Oil & Gas Development Company, Engro Holdings, MCB Bank, National Bank, and Bank Alfalah, remained under pressure.
Market sentiment weakened further after Engro Fertilisers announced quarterly earnings below expectations. The company reported earnings per share of Rs 6.26 and declared a dividend of Rs 4 per share, both below market forecasts. It cited the impacts of one-off taxation and product discounts as key reasons.
Brokerage houses said the disappointment shifted momentum decisively toward sellers. Topline Securities observed that bears dominated the session from the opening bell, with local institutions leading the selling spree.
Arif Habib Limited (AHL) noted that the index briefly dipped below 180,000 before recovering slightly above that level by the close. However, the 6.4% correction marks the largest pullback since October 2025.
The exploration and production (E&P) sector absorbed significant losses. Pakistan Petroleum Limited (PPL) and Oil & Gas Development Company (OGDC) together shaved 383 points off the index.
Meanwhile, Engro Fertilisers, Hub Power, Systems Limited, and Bank AL Habib dragged the index down by another 645 points, according to brokerage estimates.
Despite the decline, trading activity remained strong. Total volumes rose to 874 million shares, up from 734.7 million in the previous session.
Out of 485 traded companies, 93 stocks closed higher, 342 declined, and 50 remained unchanged. K-Electric led volumes with 176.9 million shares, followed by Cnergyico Pk and Amtex.
Foreign investors also contributed to the bearish tone, selling shares worth Rs739.9 million. Analysts suggest the market may trade sideways to negative in the near term. Ongoing geopolitical concerns, local uncertainties, and muted corporate earnings continue to weigh on investor confidence.
Brokerages advise investors to remain selective and focus on quality blue-chip stocks. A cautious and calculated approach appears prudent until clearer recovery signals emerge.