PSX plunges amid investor jitters

The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Wednesday as investors turned

The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Wednesday as investors turned cautious amid rising geopolitical uncertainty and external market risks. The benchmark KSE-100 Index surrendered its early gains and remained in negative territory throughout most of the trading session.

The market opened on a slightly positive note, with the KSE-100 Index posting modest gains during early trading. However, the positive momentum quickly faded as investors began selling shares across major sectors, causing the benchmark index to reverse course.

Selling pressure intensified as the session progressed, dragging the KSE-100 Index down by more than 1,000 points. During intraday trading, the benchmark also touched a low of over 1,800 points below the previous close, reflecting weak investor confidence and heightened market volatility.

Analysts said investors remained cautious due to uncertainty surrounding global developments, prompting many traders to reduce exposure to equities and book profits after recent gains.

The decline was broad-based, with losses recorded across several key sectors of the market. Automobile assemblers, oil marketing companies, cement manufacturers, fertilizer producers and power generation companies were among the worst-performing segments during the session.

The widespread selling indicated that investors were avoiding risk rather than reacting to company-specific developments, highlighting concerns over the broader economic and geopolitical environment.

Despite the decline in share prices, trading activity remained healthy. More than 172 million shares changed hands during the session, while the total value of traded shares exceeded Rs9 billion, indicating continued participation by investors despite market weakness.

The latest decline came a day after the stock market ended slightly higher following a volatile session. On Tuesday, the KSE-100 Index had climbed more than 2,000 points during intraday trading before profit-taking erased most of the gains, allowing the market to close with only a modest increase.