Volatility Hits PSX as KSE-100 Falls Nearly 800 Points in Early Trading
The Pakistan Stock Exchange (PSX) saw sharp volatility on Friday. The benchmark KSE-100 Index dropped almost 800 points in early trading.
At 12:05 pm, the index stood at 163,657.52 points — down 787 points or 0.48%. Investors booked profits, leading to selling pressure in key sectors.
Major losses came from automobile assemblers, cement, commercial banks, and oil and gas companies. Power and refinery stocks also traded lower. Heavyweights such as ARL, HUBCO, MARI, POL, PSO, MCB, and UBL remained in the red.
On Thursday, the market had already witnessed a major dip of over 1,200 points. This came even as trading volume reached a record high, showing strong investor activity despite uncertainty.
Global Pressure
Global markets also played a role in Friday’s decline. Asian stocks followed Wall Street lower as concerns grew over the health of US regional banks.
Overnight, Zions Bank’s shares fell 13% after it reported a $50 million loan loss in California. Western Alliance also plunged 11% after filing a lawsuit alleging financial fraud. These developments shook investor confidence across banking stocks in the US.
As a result, both S&P 500 and Nasdaq futures dropped 0.3%. European markets also felt the pressure, with FTSE futures down 0.9%.
Trade tensions between China and the United States further dampened global sentiment. China accused the US of creating panic over its rare earth export controls. It also rejected Washington’s call to relax these restrictions.
Meanwhile, MSCI’s Asia-Pacific Index excluding Japan slid 0.9%, marking a negative week. Japan’s Nikkei declined 1%, driven by losses in banking shares. Taiwan’s market also slipped 0.9%, even after chipmaker TSMC announced record profits and a positive AI investment outlook.
Market experts believe global uncertainty and cautious investor behavior are fueling Pakistan’s ongoing market volatility.
