Karachi: Bears tightened their grip on the Pakistan Stock Exchange on Thursday as the KMI-30 index posted a dramatic slide, wiping out thousands of points in one of the steepest single-day declines seen recently. Persistent selling across blue-chip stocks kept investors on edge throughout the session.
The trading day began on a hopeful note with the index opening at 267,623 points and touching a high of 268,223 points during early hours. However, optimism quickly faded as heavy sell orders began pouring in. By midday, the benchmark had fallen sharply, and the downward spiral continued until the closing bell.
The index finally settled at 257,527 points after shedding 9,670 points, a loss of 3.62 percent. The sharp correction triggered caution among traders who have been enjoying strong gains over recent months.
Market activity remained lively, with total volume in index constituents recorded at nearly 177 million shares. Analysts noted that while participation was strong, the mood was clearly defensive, with investors preferring to reduce exposure rather than build fresh positions.
Key heavyweights acted as major draggers. Fauji Fertilizer Company emerged as the biggest contributor to losses, followed by Engro Holdings and energy giants OGDC and PPL. Hub Power Company also added to the downward pressure. Collectively, these stocks pulled the index lower and set the tone for the day’s performance.
Financial experts say the decline appears to be a technical correction rather than a sign of deeper economic trouble. After months of upward momentum, valuations had climbed, encouraging traders to secure profits. “This type of volatility is common in equity markets and often clears the way for healthier rallies later,” said a senior analyst.
Despite Thursday’s slump, longer-term numbers offer reassurance. The KMI-30 index still shows an impressive 39.29 percent fiscal year-to-date return, indicating that the broader trend remains positive. However, the calendar year performance has slipped into the red at negative 3.62 percent, reflecting recent market softness.
Investors are now keeping a close eye on macroeconomic developments, including interest rates, inflation data, and corporate earnings. Positive triggers could quickly restore confidence and bring buyers back into the market.
For now, caution prevails at the PSX trading floor. Traders say the coming sessions will determine whether the market stabilizes or faces further pressure. Either way, Thursday’s sharp fall served as a reminder that stock markets can move swiftly in both directions.
As the dust settles, investors remain hopeful that stability will return and set the stage for renewed growth in Pakistan’s equity market.
