PSX selling pressure returns as KSE-100 falls over 300 points

KARACHI: Selling pressure returned to the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100 Index losing more than 300 points during the early trading session as investors moved to book profits across major sectors.

At around 9:50am, the benchmark index was hovering at 171,929.43 points, down 303.08 points, or 0.18% from the previous close.

The decline came a day after the market posted a strong gain of more than 830 points, suggesting that some investors were taking profits following the recent rally.

Selling was visible across several key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies and oil marketing companies. Several heavyweight stocks also traded in negative territory.

Among the companies weighing on the index were LUCK, HBL, MCB, MEBL, UBL, MARI, OGDC, PPL, PSO and SSGC, which remained under selling pressure during the opening phase.

The market was also closely watching developments involving Pakistan’s economic reform programme. Prime Minister Shehbaz Sharif met International Monetary Fund Managing Director Kristalina Georgieva on the sidelines of the United Nations General Assembly in New York.

The meeting coincided with the start of discussions between an IMF staff mission and Pakistani authorities for the next review under the $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

According to the Prime Minister’s Office, Shehbaz thanked the IMF for its continued support and reiterated the government’s commitment to implementing reforms under the IMF-supported programme.

Georgieva said on social media that she had discussed Pakistan’s reforms with the prime minister, noting that strong implementation had helped preserve economic stability, restore confidence and regain market access.

On Wednesday, the PSX had closed sharply higher, with the KSE-100 gaining 830.43 points, or 0.48%, to settle at 172,232.51. Investor sentiment had been supported by developments in US-Iran discussions, the arrival of the IMF mission and buying in refinery stocks amid expectations of progress on long-awaited upgrade agreements.

Global markets, meanwhile, offered a mixed backdrop for Pakistani investors. Asian equities were uneven as markets assessed Middle East tensions, US-China trade prospects and movements in global bond yields.

Japan’s 10-year government bond yield climbed to a 30-year high after a sharp sell-off in US Treasuries, while Japan’s Nikkei rose 1.73%. The MSCI Asia ex-Japan index fell 0.64%, and Australia’s S&P/ASX 200 declined 1.2%.

Oil prices also eased from recent highs as investors monitored diplomatic developments between Iran and the United States.

With IMF discussions, geopolitical developments, global interest-rate expectations and US-China trade talks all in focus, investors at the PSX remained sensitive to both domestic economic signals and international market movements.