KSE-100 Drops 1,300 Points as Selling Pressure Hits PSX

The Pakistan Stock Exchange came under renewed selling pressure on Wednesday as the benchmark KSE-100 index dropped by more than 1,300 points, reversing early gains and reflecting a cautious mood among investors in Karachi’s equity market.

The session initially opened on a positive note, supported by early buying in selected stocks. However, that momentum faded before midday as profit-taking accelerated and investors moved to reduce exposure across several heavyweight sectors.

By 1:29pm, the KSE-100 index had fallen to 167,054.08 points, down 1,358.15 points or 0.81 percent from the previous close. Market activity remained comparatively strong, with traded volumes crossing 256 million shares, but the broader direction stayed negative.

Brokerage commentary highlighted that the market was still absorbing the impact of the State Bank of Pakistan’s recent 100-basis-point policy rate increase. Arif Habib Limited noted that the larger-than-expected rate hike continued to weigh on sentiment and kept equities under pressure through the trading day.

The decline was broad-based, with commercial banks, oil and gas exploration companies, oil marketing firms, refineries and power generation stocks among the main contributors to the slide. Investors appeared reluctant to hold riskier positions amid uncertainty over interest rates, corporate earnings and the wider economic outlook.

The pressure followed a weak Tuesday session, when the benchmark index had already closed lower after losing 1,085.12 points. During that earlier session, the index touched an intraday high of 169,314 points and a low of 168,171 points before settling at 168,412.23.

Market data showed that 345 companies were traded by the end of the day, with 75 closing higher, 254 declining and 16 remaining unchanged. This distribution underlined that the sell-off was not limited to a few individual counters but reflected a broader risk-off pattern.

Among positive contributors, Engro Holdings, Pakistan Tobacco and Pakistan Oilfields offered some support to the benchmark index. On the negative side, United Bank Limited, Fauji Fertiliser Company and Pakistan Petroleum emerged as notable drags, pulling the market lower despite pockets of buying.

For Pakistan’s economy, the market decline signals how quickly investor confidence can weaken when monetary tightening, geopolitical uncertainty and sector-specific concerns converge. A higher policy rate can raise financing costs for businesses, slow investment appetite and encourage investors to reassess valuations.

The next sessions will be closely watched to see whether the index stabilises near current levels or faces further selling. Investors are expected to track interest rate expectations, oil price movements, corporate results and any policy signals that could restore confidence in the equity market.