The Pakistan Stock Exchange (PSX) witnessed a significant sell-off on Wednesday as the KSE-100 Index plummeted by 1,505.11 points, or 1.23 percent, settling at 120,465.93. This steep fall continues the bearish momentum for a second straight session and underscores growing unease among market participants regarding the country’s macroeconomic stability and fiscal direction.
The benchmark index oscillated within a substantial intraday range of 1,487.50 points, recording a session high of 121,905.49 before falling to a low of 120,417.99. Trading activity remained relatively moderate, with the total volume on the KSE-100 Index reaching 122.2 million shares.
Out of the 100 listed companies constituting the index, 82 closed in negative territory, only 16 managed to register gains, and 2 remained unchanged by the end of the trading day. The downtrend was led by notable declines in major stocks, with Pakgen Power (PKGP) hitting its lower circuit with a 10 percent drop, followed by Indus Motor (INDU) down 6.04 percent, Punjab Oil (POML) down 4.81 percent, Kohinoor Textile (KTML) dropping 4.71 percent, and International Steels (ISL) sliding 4.22 percent.
Heavyweight counters contributed significantly to the index’s downward spiral. Engro Corporation was the biggest index-point loser, shaving off 118.24 points. Pakgen Power followed closely, dragging the index down by 118.16 points, while Pakistan Petroleum and Mari Petroleum chipped in with losses of 89.04 and 85.68 points, respectively. United Bank Limited also played a role, subtracting 76.50 points from the benchmark.
Despite the market-wide decline, a few stocks managed to buck the trend. Bank of New York Mellon (BNWM) surged by 10 percent, leading the list of gainers. Agritech Limited (AGL) followed with an 8.71 percent increase. Other gainers included Pakistan Aluminium Beverage Cans (PABC), up 2.33 percent, Engro Fertilizers (EFERT), which added 1.03 percent, and Meezan Bank (MEBL), up 0.69 percent. Together, EFERT, MEBL, and AGL contributed a combined 79.58 points to the index, offering minor support in an otherwise bleak session.
The sharp correction comes against a backdrop of budget-related anxieties, fragile investor sentiment, and limited positive catalysts. Concerns over new fiscal measures and potential tax reforms have cast uncertainty over corporate profitability, while the broader economic outlook remains clouded by inflationary pressures and currency volatility.
Sectoral performance reflected widespread weakness, with major hits observed across oil and gas exploration, banking, automobile, cement, and power sectors. The market’s bearish streak highlights the heightened sensitivity to economic policy signals, as participants await more clarity on the fiscal front and macroeconomic direction in the aftermath of the federal budget.
Investors are now looking to upcoming economic indicators, policy announcements, and corporate earnings updates to determine whether this correction signals a longer-term downturn or merely a temporary pause amid turbulent conditions. Until clearer signals emerge, market volatility is expected to persist, with investor confidence closely tied to how swiftly key economic uncertainties are addressed.