KSE-100 plunges 1,405 points as geopolitical tensions continue

KARACHI: The Pakistan Stock Exchange (PSX) closed sharply lower under pressure amid geopolitical tensions and bilateral trade suspension with India. The benchmark KSE-100 index plunged by 1,405 points amid pressure.

The KSE-100 plunged by 1,405.45 points, or 1.22 per cent, to 114,063.9 points, down from the 115,469.35 points recorded in the last session. The highest index of the day remained at 116,658.95 points, while the lowest level was recorded at 113,867.81 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks fell across the board as investors eye heightened geopolitical tensions after India suspended the Indus Water Treaty and stalled bilateral trade.

He said that concerns over deteriorating Pakistan-India trade ties and cross border tensions played a catalytic role in the bearish close at the PSX.

The KSE-30 index decreased by 529.01 points or 1.49 per cent to 35,033.68 points from 35,562.69 points.

Traded shares dropped by 48 million shares to 423.938 million shares from 471.072 million shares. The trading value dropped to Rs26.458 billion from Rs27.31 billion. Market capital narrowed to Rs13.891 trillion against Rs14.096 trillion. Of the 449 companies active in the session, 93 closed in green, 313 in red and 43 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said that the trading session witnessed a classic tug-of-war between bulls and bears. The index opened on a positive note, gaining strong momentum in the early hours to register an intraday high of 1,189 points.

However, the optimism proved short-lived, as intensified selling pressure later in the session caused the index to reverse sharply, touching an intraday low of 1,601 points. The market eventually closed at 114,063 -- down by 1,405 points or 1.22 per cent.

He said that the prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence.

On the positive side, SYS, LUCK, MEBL, and HBL collectively contributed 489 points to the index. Conversely, the bulk of the negative impact came from ENGROH, UBL, MARI, EFERT, and PSO, which together shaved off 907 points from the benchmark.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs326.25 to Rs3,608.54 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs260 to Rs23,161 per share. A significant decline was noted in Sazgar Engineering Works Limited, which fell by Rs50.25 to Rs1,309.74 per share; Sapphire Textile Mills Limited followed it, which closed lower by Rs47.20 to Rs1,055.7 per share.

BO Punjab remained the volume leader with 23.705 million shares, which closed lower by 41 paisas to Rs9.3 per share. Power Cement, with 21.585 million shares, followed it, which closed lower by 99 paisas to Rs13.29 per share.

Other significant turnover stocks included WorldCall Telecom, Pak Elektron, Maple Leaf, Sui North Gas, Ghani Chemworld, Cnergyico PK, Sui South Gas, and Lucky Cement. In the futures market, 334 companies recorded trading, 59 of which increased and 275 decreased.