The KSE-100 index recorded its steepest single-day fall on Thursday, as Pakistan equities faced heavy selling pressure at the Pakistan Stock Exchange (PSX).
The benchmark index plunged 6,682.81 points, or 3.74%, to close at 172,170.29. During intraday trading, it briefly dropped by more than 7,200 points before recovering some of those losses by the end of the session.
Market participants described the session as one of extreme volatility, driven by persistent foreign outflows, local institutional selling and shortened Ramazan trading hours.
KSE-100 Index Steepest Single-Day Fall Explained
Brokerage analysts noted that aggressive foreign corporate selling kept buyers on the sidelines. Data showed foreign investors sold shares worth Rs135 million during the day.
Local insurance companies were also identified as major sellers, adding to downward pressure.
Index-heavy stocks, including Fauji Fertiliser Company, Engro Holdings, UBL, OGDC, Pakistan Petroleum and Meezan Bank, collectively shaved more than 2,100 points off the benchmark. The market moved closer to the key 170,000 support zone as investors adopted a risk-off stance amid regional tensions.
Trading activity remained subdued on the first day of Ramazan. Total volumes dropped to 542.98 million shares, with a traded value of Rs27.36 billion.
Market breadth turned sharply negative. Out of 483 traded stocks, 384 closed lower while only 32 advanced. In the KSE-100 index, the majority of constituents ended in the red.
Read: PSX KSE-100 Index Falls 3.74% Amid Foreign Selling, Weak Results
Analysts said thin participation amplified price swings, contributing to the historic sell-off.
Geopolitical and Corporate Developments
Investor sentiment weakened further amid escalating geopolitical tensions between the United States and Iran, heightening global uncertainty.
On the corporate front, Faysal Bank announced CY25 earnings of Rs22.5 billion with earnings per share of Rs14.80. The bank also declared a cash dividend of Rs 2 per share, taking its cumulative payout to Rs 6.5 per share.
Despite some positive corporate announcements, broader market pressure overshadowed individual stock performance. Market experts suggested that continued foreign selling and regional uncertainty could keep volatility elevated in the near term.
