KARACHI:

Hopes of further recovery were dashed at the Pakistan Stock Exchange (PSX) on Thursday as heavy selling pulled the benchmark KSE-100 index down by over 2,500 points.

In the morning, though the market commenced trading on a steady note, it began a gradual decline in the very first hour. The index continued to lose ground and plunged to the intra-day low at 178,725 well after midday.

The bourse saw broad-based selling across major sectors. There was some late-session recovery that trimmed losses, but it still ended trading deep in the red. The KSE-100 index tumbled 2,537.16 points, or 1.39%, by the close and settled at 180,512.65.

KTrade Securities equity trader Ahmed Sheraz commented that the PSX extended its bearish momentum as selling pressure remained broad-based with no visible signs of strength or meaningful recovery.

Heavyweight sectors including commercial banks, oil & gas, technology, cement and power contributed negatively to the index. Major blue-chips such as Pakistan Petroleum, Engro Fertilisers, Hub Power, Systems Limited, Oil & Gas Development Company, Engro Holdings, MCB Bank, National Bank and Bank Alfalah stayed under pressure, reflecting weak sentiment across the board, he said.

On the corporate front, Engro Fertilisers announced a dividend of Rs4 per share with Q4 earnings of Rs6.26 per share, both below market expectations. The company cited one-off taxation impact and product discounts offered to maintain market share as key reasons for the weaker-than-expected results. Given the prevailing geopolitical and local uncertainties, along with uninspiring corporate earnings, the overall tone remains fragile. “We expect the market to trade sideways to negative in the near term and investors are advised to stay selective in quality blue-chip names and maintain a cautious, calculated approach,” Sheraz added.

Arif Habib Limited (AHL) wrote in its summary that the KSE-100’s run on 180k finally took place, with the intra-day low coming in at 178.7k before a late recovery to close back above 180k. Some 18 shares rose while 80 fell with Fauji Fertiliser (+0.5%), Pioneer Cement (+2.21%) and Pakistan Services (+1.68%) contributing the most to index gains.

On the flip side, Pakistan Petroleum (-4.52%), Engro Fertilisers (-5.14%) and Hub Power (-1.80%) were the biggest index drags. Meanwhile, Engro Fertilisers announced CY25 earnings per share (EPS) of Rs16.05, down 20% year-on-year and dividend per share of Rs15, which was below expectations.

The decline below 180k brings the KSE-100 into the weekly support zone from where it may move back through 183k. The index has dropped 6.4% and it is the largest correction since October 2025, which saw an 8% dip, AHL mentioned.

Topline Securities commented that bears came out in full force, tightening their grip on the market right from the opening bell. Sentiment turned sour after Engro Fertiliser’s 4Q2025 results fell short of street expectations, posting EPS of Rs6.26 with a muted dividend payout of Rs4. The disappointment acted as a trigger, shifting momentum decisively in favour of sellers. The index remained under relentless pressure throughout the session, nosediving to the intra-day low of 4,324 points before closing at 180,513, down 2,537 points. Local institutions appeared to lead the selling spree, keeping bulls firmly on the defensive.

The E&P sector took the heaviest hit, with PPL and OGDC alone shaving 383 points off the index. Meanwhile, Engro Fertilisers, Hubco, Systems Ltd and Bank AL Habib dragged the index down by another 645 points, Topline said.

Overall trading volumes increased to 874 million shares compared with Wednesday’s tally of 734.7 million.Shares of 485 companies were traded. Of these, 93 stocks closed higher, 342 fell and 50 remained unchanged.

K-Electric remained the volume leader with 176.9 million shares, falling Rs0.38 to close at Rs8.22. It was followed by Cnergyico Pk with 52.2 million shares, shedding Rs0.31 to close at Rs7.85 and Amtex with 39.7 million shares, losing Rs0.64 to close at Rs4.67. Foreign investors sold shares worth Rs739.9 million.