The KSE-100 index at the Pakistan Stock Exchange witnessed a sharp decline on Wednesday, falling by more than 1,300 points as strong selling pressure dominated market activity throughout the session.
Although the KSE-100 index initially opened in positive territory due to early buying interest, the momentum quickly reversed as investors began profit-taking ahead of mid-session trading, leading to a broad-based downturn.
By mid-afternoon, the index had dropped to 167,054 points, reflecting a decline of 1,358 points or 0.81%. The intraday movement showed continued volatility, with the index losing over 1,100 points at its lowest level.
The decline in the KSE-100 index was driven largely by weakness in major sectors including commercial banks, oil and gas exploration companies, oil marketing firms, power generation companies, and refineries, all of which traded in negative territory.
Market experts noted that while trading volumes remained strong at over 256 million shares, overall sentiment was cautious as investors focused on securing short-term profits amid economic uncertainty and recent monetary policy changes.
Earlier sessions had already shown pressure after a 100-basis-point interest rate hike by the central bank, which raised concerns about higher borrowing costs and potential impacts on business activity and corporate earnings.
Despite the broader decline in the KSE-100 index, a few stocks such as Engro Holdings, Pakistan Tobacco, and Pakistan Oilfields recorded gains, though these were not enough to offset heavy losses in major index-heavy sectors.
Analysts suggest that market direction will likely remain sensitive to macroeconomic indicators, interest rate expectations, and corporate earnings in the coming sessions.
