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Pakistan’s benchmark KSE-100 index fell 1,138.50 points on Thursday despite a staff-level agreement with the International Monetary Fund (IMF). Renewed regional tensions and profit-taking weighed on investor sentiment.
The benchmark closed at 167,441.91, down 0.68% from the previous session. It had initially gained around 906 points, reaching an intraday high near 169,487 before selling pressure erased its gains.
According to market reports, the index faced resistance at higher levels. Investors began booking profits, pushing the market towards its session low.
Arif Habib Limited (AHL) reported broad-based selling across the benchmark. A total of 76 KSE-100 constituents closed lower, while 23 advanced.
United Bank Limited (UBL), Fauji Fertiliser Company (FFC), Systems Limited (SYS), Engro Fertilisers (EFERT) and Pakistan Oilfields Limited (POL) were among the major contributors to the decline.
These five stocks collectively dragged the index down by around 394 points, according to Topline Securities.
Pakistan State Oil (PSO), LOTCHEM and Abbott Laboratories Pakistan provided some support. However, their gains were insufficient to offset losses in heavyweight stocks.
Trading activity weakened during Thursday’s session. Total market volume fell to 365.9 million shares from 586.9 million shares in the previous session.
The value of shares traded reached Rs17.7 billion, according to Topline Securities.
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Shares of 496 companies changed hands on the Pakistan Stock Exchange (PSX). Of these, 130 closed higher, 324 declined and 42 remained unchanged.
Foreign investors also sold shares worth Rs245 million, according to the National Clearing Company of Pakistan.
Pakistan and the IMF reached a staff-level agreement that could unlock approximately $1.2 billion in additional financing. The funds are linked to the Extended Fund Facility and the Resilience and Sustainability Facility.
The agreement still requires approval from the IMF’s executive board. It could provide financial support as Pakistan manages economic pressures and the wider effects of the Middle East conflict.
Despite the development, investors remained cautious. Market participants also weighed concerns over renewed regional tensions and their potential economic impact.
Reports of Houthi strikes on two Saudi airports, which reportedly killed three people and injured dozens, added to regional uncertainty.
Meanwhile, a government comment about Pakistan potentially achieving its 30% electric-vehicle sales target for 2030 ahead of schedule received limited market attention.
AHL said the KSE-100 had turned lower after facing its first resistance zone. The index’s next moves will depend on whether selling pressure continues.
According to the brokerage’s technical assessment, a break below 165,500 could expose the market to a further decline towards 160,000.
Investors will likely monitor regional developments, economic indicators and progress towards final IMF approval. These factors could influence market direction in upcoming sessions.
K-Electric topped the volume chart, with 29.7 million shares traded. Its stock fell Rs0.08 to close at Rs5.96.
Cnergyico PK followed with 21.3 million shares. The stock declined Rs0.34 to settle at Rs12.39.
Waves Home Appliances ranked third, with 16.9 million shares traded. Its share price dropped Rs0.08 to close at Rs7.77.
The session ended with the benchmark in negative territory, as selling in heavyweight stocks outweighed early optimism over Pakistan’s IMF agreement.
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