PSX Plunges Over 3,000 Points as Geopolitical Tensions Trigger Broad Sell-Off

The benchmark KSE-100 index tumbled more than 3,000 points at the Pakistan Stock Exchange (PSX) on Thursday, slipping below the psychologically critical 170,000 level to match July lows. Investors aggressively dumped equities following a surge in global oil prices and renewed military exchanges between the United States and Iran.

Market breadth was overwhelmingly negative, with 406 stocks declining against just 58 gainers. Trading volumes swelled to 629 million shares valued at Rs27 billion. At the close, the KSE-100 settled at 168,865.04, down 3,078.56 points, or 1.79%.

Arif Habib Limited (AHL) observed that the index broke decisively below the 170,000 threshold, reaching technical targets identified last July. Breadth remained extremely weak, with only three scrips advancing while 95 declined. The modest gainers were Pakistan Services (+1.53%), Atlas Honda (+0.19%), and Kohat Cement (+0.13%). The heaviest drags came from Meezan Bank (-3.58%), Pakistan Petroleum (-3.05%), and Fauji Fertiliser Company (-1.67%). AHL highlighted that geopolitical risk dominated sentiment, with Iran signaling readiness for a more intense conflict should U.S. strikes escalate.

On the domestic front, media reports indicated Prime Minister Shehbaz Sharif approved a draft five-year automobile policy offering significant tax incentives for new energy vehicles while safeguarding existing assemblers. In corporate news, Interloop Ltd announced FY26 earnings per share of Rs9.38—a 144% year-on-year increase—alongside a dividend of Rs4 per share. AHL warned that overall price action remains technically weak, leaving the market vulnerable to further downside if support at the July lows fails to hold.

Topline Securities noted that renewed U.S.-Iran hostilities shattered investor confidence, while the sharp spike in international oil prices amplified concerns over inflation, the external account, and macroeconomic stability. The index hit an intraday low of 3,471 points before paring some losses, reflecting broad-based risk-off sentiment. Selling by local institutional investors intensified the pressure as participants aggressively trimmed positions amid fears of prolonged disruption in global oil markets.

Meezan Bank, FFC, PPL, OGDC, and Hubco were the primary laggards, collectively dragging the index down by approximately 1,004 points. Market participation remained active; total traded volume reached 629 million shares compared to 478 million in the previous session. Cnergyico led volumes with 99 million shares traded, closing at Rs12.37, down Rs0.69. It was followed by Tasdeeq Information (41 million shares, up Rs0.27 to Rs4.24) and Media Times (29 million shares, down Rs0.13 to Rs6.70). Foreign investors were net sellers, offloading shares worth Rs80.9 million, according to the National Clearing Company.

In the ready market, shares of 499 companies changed hands. Of these, 58 closed higher, 406 lower, and 35 unchanged.

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