The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Wednesday as widespread selling pressure gripped the market, pushing the benchmark KSE-100 Index down by over 800 points. The decline mirrored growing investor unease, driven by both domestic sector-specific adjustments and a cautious global investment climate.
From the opening bell, negative sentiment dominated trading at the PSX. The KSE-100 Index slid to an intra-day low of 132,326.17 points before managing a slight pullback. By market close, however, it settled at 132,576.98 points, marking a substantial drop of 826.21 points or 0.62% from the previous session.
Selling was largely concentrated in major sectors such as commercial banks, fertilizers, and oil and gas exploration and refining companies. Index-heavyweights including Attock Refinery (ARL), National Refinery (NRL), Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields (POL), MCB Bank, Meezan Bank (MEBL), and United Bank Limited (UBL) all traded deep in the red, weighing heavily on the benchmark index.
This slump followed a volatile session on Tuesday when the KSE-100 experienced wide swings, oscillating between modest gains and losses before closing nearly flat at 133,403.19 points, up by a narrow margin of 33 points or 0.02%.
The domestic slide comes amid a complex international backdrop. The US dollar hovered close to a two-and-a-half-week high against major currencies on Wednesday, adding currency market pressures that indirectly impact sentiment in emerging markets like Pakistan. Meanwhile, copper touched record highs overnight after former US President Donald Trump expanded his global trade war threats by proposing a hefty 50% tariff on the metal.
Trump also warned of upcoming tariffs on semiconductors and pharmaceuticals, which rattled Wall Street on Tuesday. US stock futures pointed to continued softness, indicating that American investors remain wary of escalating trade policies.
Asian markets painted a mixed picture. Japan’s Nikkei slipped by 0.2% after giving up earlier modest gains, while Australia’s main index shed 0.4%. Hong Kong’s Hang Seng also retreated by 0.9%, showing clear signs of investor caution. In contrast, mainland China’s blue-chip stocks edged up by 0.2%, and South Korea’s KOSPI advanced by 0.5%, reflecting selective buying interest in the region.
Traders continue to watch developments closely as Trump’s shifting deadlines and rhetoric keep global markets on edge. Earlier this week, Trump suggested an August 1 deadline for Japan and South Korea to finalize new trade agreements was “firm, but not 100% firm,” suggesting room for negotiation. However, by Tuesday, he appeared to toughen his stance, declaring that “no extensions will be granted,” intensifying market speculation on possible disruptions to trade flows.
Against this uncertain global and regional backdrop, Pakistan’s stock market remains sensitive, with local investors opting for profit-taking and reallocating portfolios to mitigate perceived risks. As pressures build from both international trade developments and sector-specific dynamics at home, market watchers expect volatility to persist in the near term, urging caution until clearer trends emerge.
This broad-based retreat at the PSX underlines how intertwined local market movements have become with global economic signals, reinforcing the importance for investors and regulators alike to track international shifts that can quickly ripple into Pakistan’s financial ecosystem.