KARACHI:
Following Tuesday’s robust recovery, stocks struggled again on Wednesday, weighed down by concerns over escalating US tariffs and a global market slump.
Pakistan Stock Exchange (PSX) felt the ripple effects of a broader downturn in international equities, compounded by a sharp decline in global oil prices, and lost over 1,350 points. The potential impact of US tariffs on Pakistan’s exports as well as rupee weakness added to the pressure.
Meanwhile, the Asian Development Bank (ADB) projected that Pakistan’s economy would grow by 3% in FY26 and 2.5% in FY25.
PSX’s benchmark KSE-100 index oscillated between the intra-day low of 112,891 and intra-day high of 115,092 points. Across-the-board selling was observed, with notable declines in automobile, cement, chemical, commercial bank and oil and gas exploration sectors.
Arif Habib Corp MD Ahsan Mehanti wrote that stocks fell sharply amid a rout in global equities and a slump in crude oil prices following intensification of the global trade war.
“Weak rupee and uncertainty about the outcome of US tariffs on Pakistan’s exports were the key factors behind bearish close at the PSX,” he noted. At the end of trading, the KSE-100 index posted a substantial drop of 1,379.28 points, or 1.19%, and closed at 114,153.16.
Topline Securities commented that stocks remained under significant pressure as mounting uncertainty about US tariff measures reverberated across global financial markets. In line with the negative trend in international equities, the local bourse experienced heightened volatility throughout the session. As a result, the KSE-100 index plunged 2,640 points at one point during intra-day trading, it said.
Although some recovery came in the latter half, the index settled at 114,153, reflecting a net decline of 1,379 points. The major drags were United Bank, Engro, Oil and Gas Development Company, Pakistan Petroleum and Systems Limited, which lost 639 points, Topline added.
Arif Habib Limited (AHL), in its report, said that while the market opened “gap down”, it hit the day’s low at 112.9k.
On KSE-100, 17 shares rose while 81 declined. Major contributors to the index decline were United Bank (-1.99%), Oil and Gas Development Company (-2.96%) and Pakistan Petroleum (-3.13%). However, Mari Petroleum (+0.69%), Interloop Limited (+2.92%) and Thal Limited (+2.42%) bucked the bearish trend. Citing news reports, AHL pointed out that the ADB forecast that Pakistan’s economy would expand by 3% in FY26 and 2.5% in FY25. Also, PIA Holding Company (+5.98%) was set to report its first annual profit in over two decades, ahead of plans to sell the national carrier.
KTrade Securities, in its market wrap, wrote that Wednesday’s decline was triggered by the US’s additional tariffs on China, which sent shockwaves through Asian markets, including the PSX. The downturn was led by weak performances in bank, oil & gas and tech sectors.
Despite bearish sentiment, the local market’s long-term prospects appeared promising following a successful IMF review, it said. However, global risks persist and investors should exercise caution with proper risk management plans in place. According to JS Global analyst Muhammad Hasan Ather, the PSX’s downturn stemmed from political uncertainty, concerns over economic reforms and turbulence in global markets.
The bourse breached several psychological thresholds, amplifying investor anxiety. Its trajectory would remain volatile until greater clarity emerged on both political and economic fronts, he said.
Overall trading volumes decreased to 448.7 million shares compared with Tuesday’s tally of 530.7 million. Shares of 450 companies were traded. Of these, 118 stocks closed higher, 281 fell and 51 remained unchanged. The value of shares traded was Rs26.6 billion.
K-Electric was the volume leader with trading in 54.5 million shares, losing Rs0.07 to close at Rs4.21. It was followed by Cnergyico PK with 51.8 million shares, falling Rs0.08 to close at Rs8.32 and PIA Holding Company with 20.5 million shares, rising Rs1.06 to close at Rs18.80. Foreign investors bought shares worth Rs298 million, the National Clearing Company reported.
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