The Pakistan Stock Exchange (PSX) continued its downward trajectory on Thursday, with the benchmark KSE-100 index falling 1,732 points, or 1.09%, to close at 156,733, marking a new closing low and surpassing the previous low of 158,443 recorded on October 13, 2025.
Investor sentiment remained fragile amid escalating regional tensions following the collapse of talks between Islamabad and Kabul, which dashed hopes for cross-border economic and trade stability. “The diplomatic setback fueled risk aversion and triggered institutional selling in key sectors,” said Ali Najib, deputy head of trading at Arif Habib Ltd.
Read: PSX extends its bearish streak and falls 2,063 points
The session initially opened on a positive note, with the index reaching an intraday high of 159,507 points (+1,042 points or +0.66%) thanks to selective buying. However, the momentum faded as widespread profit-taking dragged the market into negative territory heading into the close.
Heavyweight counters including Engro Corporation (ENGRO), Bank of Punjab (BOP), Systems Limited (SYS), United Bank Limited (UBL), MCB Bank (MCB), Thal Limited (THALL), Bank Alfalah (BAFL), Mari Petroleum (MARI), Service Industries (SRVI) and Pakistan Petroleum (PPL), collectively erased 1,538 points from the benchmark index.
Read more: PSX extends losing streak as index drops 2,062 points
Despite the decline, overall activity remained strong, with 846.8 million shares traded, valued at Rs 37.5 billion. BOP led volumes with 84.1 million shares changing hands.
Analysts noted that the index’s decline below the 157,000 level reflects the persistence of bearish sentiment. “A recovery above 160,000 in the last session of the week will be crucial to restore investor confidence and hint at near-term stabilization,” they added. “If it does not recover, the market could be exposed to further declines in the coming sessions.”
