The Pakistan Stock Exchange (PSX) remained under sustained selling pressure, pushing the benchmark KSE-100 Index below the 166,000-point mark amid rising political uncertainty following the imposition of an emergency in Khyber Pakhtunkhwa.
According to Topline Securities Ltd, the benchmark index came under renewed pressure, plunging 1,920 points during intraday trading before closing at 165,124.41 points, down 1,964.87 points, or 1.18 per cent.
The bearish sentiment followed the federal government’s decision to impose an emergency in Khyber Pakhtunkhwa after President Asif Ali Zardari approved the federal cabinet’s recommendation on Sunday. The development heightened political uncertainty and prompted investors to adopt a cautious approach.
The announcement triggered widespread selling across the market, with investors remaining on the sidelines amid concerns over the evolving political situation and a lack of fresh positive triggers.
The market’s decline continued despite a staff-level agreement with the International Monetary Fund (IMF), which paved the way for the release of $1.2 billion under the country’s two ongoing programmes, subject to approval by the fund’s Executive Board.
Rising international oil prices also added to market concerns. Crude prices climbed to nearly two-week highs as attacks on Saudi Arabia overshadowed the prospect of additional supplies entering the market.
Brent crude futures increased by $2.07, or 2 per cent, to $106.79 per barrel, their highest level since September 29. Meanwhile, US West Texas Intermediate crude rose by $1.69, or 1.8 per cent, to $93.54 per barrel.
United Bank, Oil and Gas Development Company, Habib Bank, Meezan Bank and Lucky Cement were among the major laggards, collectively pulling approximately 645 points off the KSE-100 Index.
Investor participation remained relatively subdued, with trading volumes staying below the 500-million-share mark. However, total volume increased by 17.3 per cent to 362.95 million shares during the session, while turnover value rose by 6.02 per cent to Rs14.5 billion. Treet Corporation topped the volume chart with 27 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX experienced a volatile and bearish session, opening lower amid heightened domestic political uncertainty.
He noted that value buying at lower levels provided temporary support and triggered a brief recovery in the benchmark index. However, the rebound proved short-lived, with the market ultimately closing significantly lower.
Najib said volatility was likely to persist amid continued political uncertainty and cautious investor sentiment. He added that further downside pressure could not be ruled out, although buying at lower levels might offer intermittent support.
He advised investors to remain selective, focus on fundamentally strong stocks and avoid aggressive positions until market sentiment stabilises.
