KSE-100 loses 3,559 points after Indian strikes

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday as panic-driven investors engaged in heavy sell-offs following the escalation of geopolitical tensions and midnight strikes by India. Although the market managed to recover some of its initial losses, it still closed down by 3,559 points.

The benchmark KSE-100 index plunged by 3,559.48 points, or 3.13 per cent, to 110,009.03 points, down from 113,568.51 points recorded in the last session. The highest index of the day remained at 112,457.38 points, while the lowest level was recorded at 107,007.68 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks closed sharply lower amid escalation in tensions between Pakistan-India and security unrest after Indian strikes.”He said that the weak rupee and uncertain economic outlook amid the Pakistan-India conflict over trade ties played a catalystic role in the bearish close.

The KSE-30 index decreased by 1,071.28 points or 3.09 per cent to 33,609.41 points from 34,680.69 points. Traded shares rose by 130 million shares to 550.076 million shares from 420.552 million shares. The trading value rose to Rs30.121 billion from Rs23.696 billion. Market capital narrowed to Rs13.344 trillion against Rs13.774 trillion. Of the 447 companies active in the session, 49 closed in green, 356 in red and 42 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the benchmark index saw significant volatility. It dropped by 6,561 points in early trade amid broad-based panic selling following an overnight military clash between Pakistan and India. However, the market regained some ground after the initial shock. “Investors remain cautiously optimistic, expecting stability if tensions do not escalate further,” he said.

The downward trajectory of the index was largely driven by negative contributions from key stocks such as LUCK, HUBC, UBL, SYS, and ENGROH, which collectively dragged the index down by 967 points.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs581.16 to Rs6,392.75 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs240.55 to Rs22,531.29 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs150.56 to Rs8,824.44 per share; Hoechst Pakistan Limited followed it, which closed lower by Rs109.41 to Rs3,185 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the KSE-100 index faced intense volatility as geopolitical tensions with India triggered a sharp sell-off at market open. “Early losses stemmed from investor panic following military escalations, but optimism surrounding the May 9 IMF board meeting helped the market regain ground,” he said. “Looking ahead, stability hinges on geopolitical developments and Pakistan’s ability to secure IMF funds, which could restore investor confidence and drive a rebound.”

WorldCall Telecom remained the volume leader with 53.673 million shares, which closed lower by 11 paisas to Rs1.22 per share. BO Punjab, with 35.773 million shares, followed it, which closed lower by 61 paisas to Rs9.18 per share.

Other significant turnover stocks included Sui South Gas, Pak Int Bulk, K-Electric Ltd, Fauji Cement, Cnergyico PK, Fauji Foods Ltd, Maple Leaf and Sui North Gas. In the futures market, 333 companies recorded trading, 4 of which increased, and 329 decreased.