KARACHI: Bearish sentiment dominated the Pakistan Stock Exchange (PSX) on Thursday, pushing the benchmark index below 169,000 amid widespread panic selling by nervous investors for the fourth session in a row.
Driven by heightened economic uncertainty stemming from high oil prices caused by supply disruptions and intensifying military conflicts in the Middle East, aggressive selling pressure reduced market capitalisation by Rs378 billion in a single session.
The emerging external scenario has dampened prospects for economic recovery and poses risks to energy supply stability as local petroleum prices head to new highs.
Topline Securities Ltd said the local bourse came under heavy selling pressure as renewed US-Iran attacks shattered investor confidence, while a sharp surge in international oil prices further fuelled concerns about inflation, the external account, and overall macroeconomic stability.
Index sheds 3,079 points, market capitalisation drops Rs378bn
The KSE-100 index plunged 3,078.56 points, or 1.79 per cent, to close at 168,865.04, after hitting an intraday low of 3,471 points at 168,471.78, reflecting broad-based risk-off sentiment across the market.
Selling by local institutional investors further intensified the pressure as investors aggressively trimmed positions amid heightened geopolitical uncertainty and fears of a prolonged disruption in global oil markets.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investor sentiment remained cautious amid the escalating US-Iran conflict and attacks on shipping through the Strait of Hormuz. Oil prices stayed above $100 per barrel, raising concerns about higher fuel prices, renewed inflationary pressures, a widening import bill, and potential implications for monetary policy.
On the corporate front, Interloop Ltd reported FY26 earnings per share of Rs9.06, up 129pc YoY from Rs3.96 in FY25, and announced a final dividend of Rs2 per share, taking the FY26 payout to Rs4 per share.
On the index contribution front, Meezan Bank, Fauji Fertiliser, Pakistan Petroleum, Oil and Gas Development Company, Hub Power, Lucky Cement, United Bank, Engro Holdings, Pakistan State Oil and Mari Energies were among the major contributors to the index decline, collectively wiping out approximately 1,484 points.
Investor participation remained relatively stable, with total trading volume falling 31.61pc to 628.6 million shares and total turnover value rising 19.34pc to Rs27.1bn. Cnergyico PK topped the volume chart with 99.4m shares.
Analysts say geopolitical developments and elevated oil prices would remain key drivers of market direction.
Published in Dawn, September 11th, 2026