The Pakistan Stock Exchange (PSX) opened on a sharply bearish note on Friday, with the benchmark KSE-100 Index witnessing heavy selling pressure in early trading hours, reflecting a cautious investor mood driven by both local and global factors. The index dropped by more than 1 percent, shedding over 3,200 points shortly after the opening bell, as market participants reacted to weak international cues and profit-taking following recent gains.
According to data available on the PSX website, the KSE-100 Index plunged to 184,548.34 points at around 10:00 am, marking a decline of more than 3,200 points from the previous close. Although some recovery was observed later in the session, the market remained under pressure. By 11:34 am, the index was hovering at 186,375.95 points, still down by 1,456.13 points or 0.78 percent, indicating persistent selling interest across the board.
The decline was broad-based, with key sectors contributing to the downward momentum. Heavy selling was observed in fertiliser, cement, commercial banks, automobile parts and accessories, automobile assemblers, and oil and gas marketing companies. These sectors carry significant weight in the benchmark index, and weakness across them amplified the overall market decline. Investors appeared cautious, opting to reduce exposure amid uncertainty surrounding global markets.
The negative opening marked a reversal from the previous trading session. On Wednesday, the KSE-100 Index had closed higher by 931 points at 187,832.08, recording its fourth consecutive session of gains. That rally had been supported by selective buying and improved sentiment following recent market developments. However, the positive momentum could not be sustained, as Friday’s session reflected a shift in sentiment aligned with international market trends. The PSX remained closed on Thursday due to the public holiday observed for Kashmir Day, which also delayed the market’s reaction to global developments.
Global equities continued to face pressure, extending losses into a third consecutive day. The MSCI Asia-Pacific Index outside Japan fell by 1 percent, underscoring weak sentiment across regional markets. South Korea’s KOSPI index experienced a sharp decline of 5 percent, triggering a brief trading halt, while futures tied to major US indices also pointed lower. The S&P 500 e-mini futures slipped by 0.2 percent, and the Nasdaq e-mini futures declined by 0.4 percent, signaling continued caution among global investors.
Market sentiment globally has been weighed down by growing concerns that emerging artificial intelligence models could disrupt profit outlooks within the software sector. Additionally, worries about the labor market have intensified. The S&P 500 has turned negative for the year, as fears surrounding job losses mount. A report by Challenger, Gray & Christmas indicated that layoffs surged in January, reaching their highest level for the month in 17 years, adding to investor anxiety about economic resilience.
Commodity markets also reflected heightened volatility. Precious metals faced pressure, with gold slipping by 0.1 percent to $4,764.43, while silver experienced a sharp intraday fall of 10 percent before trimming losses to trade down by 1.4 percent at $70.26. The movement in precious metals highlighted the broader uncertainty gripping global financial markets.
The sharp decline at the PSX underscores the market’s sensitivity to global developments, particularly at a time when investors are closely monitoring international equity trends, economic data, and sector-specific risks. While intermittent recoveries remain possible, the overall tone suggests a cautious approach by investors as they navigate a volatile global and regional market environment.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.