KEY POINTS
- Stocks retreat as global risk aversion and local profit-taking dominate
- Sentiment weakens amid global market turbulence and safe-haven shift
- Institutional selling pressure persists despite selective buying interest
- Analysts expect volatility to continue amid cautious outlook
KARACHI, Pakistan: The Pakistan Stock Exchange (PSX) came under renewed pressure on Wednesday, mirroring the weakness in global equities as investor sentiment turned risk-averse.
Despite a tentatively positive start, profit-taking and external headwinds weighed on the market, sending key indices into negative territory by the end of the session.
Session Highlights and Market Breadth
The KSE-100 index settled at 165,266.74 points, down 907 points (.55%), after fluctuating between an intraday high of 166,947.19 and a low of 165,109.84.
Market participation remained moderate, with total traded volume of 1.27 billion shares valued at Rs 61.13 billion, according to official PSX data.
Market breadth leaned negative, as a majority of the 370-plus active scrips ended lower.
Heavyweights in energy, cement, and exploration sectors led the decline, while selective interest was observed in banking and fertiliser stocks, which provided brief support during early trade.
Global Pressure and Investor Sentiment
Analysts attributed the weakness to intensifying global market anxiety, with investors shifting from equities to safe-haven assets amid uncertainty over US fiscal policy, volatile oil prices, and ongoing geopolitical risks.
The recent surge in gold prices to record highs has further highlighted this flight to safety, drawing capital away from risk assets.
Dealers told Business Recorder that institutional investors engaged in profit-taking following the previous week’s gains, while retail participants largely stayed on the sidelines.
“It’s a sentiment-driven market now — even fundamentally strong stocks are being sold on caution,” a leading broker told the publication.
Drivers and Underlying Sentiment
Locally, investors are monitoring fiscal measures, energy pricing adjustments, and signals on the next IMF review.
Despite some macro stability, the lack of sustained foreign inflows and muted corporate earnings outlooks has tempered risk appetite. Analysts said domestic factors alone cannot offset the drag from international markets.
Outlook
Market watchers told Dawn that short-term volatility is likely to persist as both global and local uncertainties weigh on sentiment. A clearer direction may emerge only after global markets stabilise and clarity surfaces on domestic fiscal policy and external financing flows.
