KSE-100 loses over 200 points as selling pressure returns

Selling pressure returned to the Pakistan Stock Exchange during early trading on Friday, pulling the benchmark KSE-100 Index down by more than 200 points after the market’s strong advance in the preceding session. At 9:50am, the index stood at 166,957.17, reflecting a decline of 236.26 points, or 0.14%, from Thursday’s close.

The early weakness was spread across several influential sectors rather than being confined to a small group of companies. Automobile assemblers, cement manufacturers, commercial banks, fertiliser producers, oil and gas exploration companies and oil marketing businesses were among the segments facing selling pressure.

Major index constituents trading in negative territory included Hub Power Company, Mari Energies, Pakistan Petroleum Limited, MCB Bank, Meezan Bank, National Bank of Pakistan and United Bank Limited. Losses in these heavily weighted shares contributed to the benchmark index’s decline during the opening phase of trading.

The downturn followed a considerably stronger session on Thursday, when the KSE-100 gained 1,456.68 points, or 0.88%, to finish at 167,193.44. That recovery had been supported by optimism surrounding possible diplomatic progress in the Middle East, even as uncertainty persisted over efforts to end the wider regional conflict.

Domestic inflation expectations also remained an important consideration for investors. The Ministry of Finance projected that inflation would remain between 9.5% and 10.5% in October 2026, citing elevated food and energy prices. Persistently high inflation can influence expectations for interest rates, corporate financing costs and consumer demand, making the outlook relevant to valuations across multiple listed sectors.

Pressure in Pakistan coincided with weakness across major international markets. Technology shares declined in Asia as investors questioned whether rapidly rising expenditure on artificial intelligence infrastructure would produce adequate financial returns. The sell-off followed sharp losses in major United States technology companies and weakened sentiment toward semiconductor and data-centre-related businesses.

Alphabet shares fell 12.6% on Wall Street as concerns grew over the company’s spending and cash flow, while Intel dropped sharply in after-hours trading and Amazon also came under pressure. Nasdaq 100 futures declined, South Korea’s KOSPI fell 5%, and Japan’s Nikkei lost 3%. Chinese blue-chip shares were meanwhile heading toward their largest monthly decline in a decade amid weakening enthusiasm for artificial intelligence stocks.

Cryptocurrency markets also faced renewed volatility after reports of a major security breach involving Binance. The incident weighed on bitcoin, other digital assets and shares associated with cryptocurrency trading, adding another source of risk aversion to an already cautious global market environment.

The figures represent an intraday snapshot and not the market’s final closing position. Investors will be watching whether buying interest returns later in the session, particularly in banking and energy shares, or whether inflation concerns and weak global technology markets keep the benchmark under pressure through Friday’s close.