PSX Falls Over 600 Points as Broad Sector Selling Weighs on Market
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange (PSX) remained under pressure in Wednesday’s session, with the benchmark KSE-100 Index falling more than 600 points by midday as selling spread across major sectors amid continuing uncertainty over Middle East energy supplies.
At 12:38pm, the KSE-100 stood at 168,784.81, down 607.51 points, or 0.36%, from the previous close of 169,392.32.
The benchmark had opened in negative territory and remained under pressure through the morning.
At 9:33am, the index was down 394.15 points at 168,998.17. Losses subsequently widened to 710.59 points, taking the benchmark to 168,681.73 before it recovered part of the decline.
During the session, the KSE-100 moved between an intraday high of 169,382.01 and a low of 168,334.74.
Trading volume stood at approximately 61.66 million shares, while traded value reached Rs6.42 billion by the time of the Tribune market update.
Banks, Cement and Energy Stocks Face Selling
Selling pressure was visible across several index-heavy sectors.
Automobile assemblers, cement companies, commercial banks, oil and gas exploration companies and oil marketing companies all came under pressure, contributing to the broader market decline.
The weakness followed Tuesday’s strong recovery, when the KSE-100 gained 1,421.67 points, or 0.85%, to close at 169,392.33, recovering part of Monday’s sharp sell-off.
That rebound was supported by selective buying after the State Bank of Pakistan maintained its policy rate at 11.5%, while improved foreign exchange reserves and Pakistan’s recent Eurobond issuance also helped sentiment.
Wednesday’s renewed decline showed that investors remained cautious despite the previous session’s recovery.
Oil Prices Retreat After US Inventory Build
International oil prices also declined on Wednesday after preliminary data showed a surprisingly large increase in US crude inventories.
Brent crude fell as traders reacted to an estimated 7.1-million-barrel increase in US crude stocks for the week ended September 11. Analysts surveyed by Reuters had expected inventories to fall by around 1.6 million barrels.
Brent was trading around $107.53 per barrel, while US West Texas Intermediate was around $104.19, according to Reuters’ Wednesday market update.
Normally, lower international oil prices can offer some relief to an oil-importing economy such as Pakistan by reducing pressure on the import bill and inflation outlook.
However, investors remain concerned about continuing supply disruptions in the Middle East.
Saudi Arabia’s East-West pipeline remains disrupted following attacks, while loadings at the kingdom’s Yanbu port have also been suspended. Saudi Arabia has been trying to maintain supplies by offering additional crude through ship-to-ship transfers off Sohar, Oman.
Shipping through the Strait of Hormuz also remains sharply constrained, keeping the global energy outlook uncertain despite Wednesday’s retreat in crude prices.
PSX Remains Sensitive to Middle East Developments
The Pakistani market has experienced significant volatility this week.
On Monday, the KSE-100 plunged 2,541.20 points, or 1.49%, to 167,970.66 as escalating Middle East tensions and elevated crude prices triggered broad-based selling.
The market then staged a strong rebound on Tuesday before returning to negative territory on Wednesday.
The pattern highlights investors’ continued sensitivity to international crude prices, Middle East security developments, domestic interest rates and their potential implications for Pakistan’s inflation and external account.
For Pakistan, sustained crude prices above $100 per barrel remain an important economic risk because the country relies heavily on imported energy. The eventual impact depends on the duration of elevated international prices, exchange-rate movements and domestic fuel-pricing policies.
Important: Wednesday Session Still Underway
The 607.51-point decline is an intraday figure, not Wednesday’s closing result.
The Express Tribune’s figure was recorded at 12:38pm Pakistan time, meaning the KSE-100 could recover further or extend its losses before the market closes.
For publication at this stage, headlines should therefore use wording such as “falls,” “slips” or “trades lower” rather than saying the PSX “closed” 607 points down.
