The Pakistan Stock Exchange (PSX) experienced a significant downturn on Thursday, with the benchmark KSE-100 index falling by over 1,730 points. This marks the seventh consecutive session of declines, representing the market’s longest losing streak since June 2023.
The index closed at 156,732.87, a 1.09% decline amid heightened volatility and cautious investor sentiment. The sustained decline has brought the total loss during this bearish phase to 7%, matching a previous correction recorded earlier in the month.
The market’s decline was driven by major losses in key blue-chip stocks. Companies including Engro, The Bank of Punjab (BOP), Systems Limited, United Bank Limited (UBL), and MCB Bank were the primary contributors to the index’s fall.
Despite the negative trend, market participation remained strong. The total trading volume reached 848 million shares, indicating continued engagement from both retail and institutional investors. The Bank of Punjab led the volume chart with 84.2 million shares traded.
Corporate Earnings and Market Outlook
Corporate earnings reports presented a mixed picture, influencing sector-specific performance:
- Pak Elektron announced a 64% year-on-year increase in its nine-month earnings.
- Hub Power Company reported a 39% decline in its first-quarter earnings.
- Engro Holdings posted results significantly impacted by a one-off impairment reversal.
Analysts at Topline Securities noted that the market fluctuated between an intra-day high of 159,507 and a low of 156,328, reflecting intense volatility and mixed investor sentiment.
The ongoing decline reflects investor caution over macroeconomic conditions and inconsistent corporate results. As the market heads into the final session of October, the index shows a 5.29% monthly decline. Some brokerage firms anticipate a potential recovery after the establishment of new monthly lows.
