The Pakistan share market witnessed a significant downturn on Thursday as the benchmark KSE-100 index fell by 589 points, closing at 46,056 points compared to the previous day’s 46,644 points.
The decline in share market was driven by aggressive selling in major scrips, marking a volatile trading session.
Analysts at Arif Habib Limited noted that despite reaching a historic high in trading volumes, the share market saw a dramatic swing. The KSE-100 index initially gained 291 points but then plummeted by 684 points before settling at a net loss of 589 points.
At the share market the cement sector performed well early in the session, with Pioneer Cement (PIOC) and D.G. Khan Cement (DGKC) hitting their upper circuits. However, the sector eventually succumbed to selling pressure, notably with Maple Leaf Cement (MLCF) experiencing a significant decline, pushing its stock price below the Last Day Closing Price (LDCP).
Banks, Exploration & Production (E&P), and Oil & Gas Marketing Companies (O&GMCs) were among the sectors that faced aggressive selling at the share market, contributing significantly to the index’s decline. Specifically, the banking sector dragged the index down by 152 points, followed by the technology sector (-90 points), O&GMCs (-76 points), E&P (-73 points), and power sector (-64 points).
Trading volumes surged from 1 billion shares to 1.12 billion shares, marking an 11 percent increase day-over-day (DoD) at the share market. The average traded value also saw a substantial rise, climbing 30 percent to reach $223.8 million from the previous $171.6 million.
Among the individual scrips, WorldCall Telecom (WTL) led the trading volumes with 353.5 million shares, followed by Telecard Limited (TELE) with 97.4 million shares and K-Electric (KEL) with 47 million shares. These three stocks alone accounted for a significant portion of the day’s trading activity, forming 52 percent of the total volumes at the share market.
On the positive side, stocks that contributed to the index included D.G. Khan Cement (DGKC) with a gain of 31 points, Kohat Cement (KOHC) with 20 points, Lucky Cement (LUCK) with 9 points, Azgard Nine Limited (ANL) with 7 points, and Fauji Cement Company Limited (FCCL) with 6 points. Conversely, the stocks that contributed negatively to the index were TRG Pakistan Limited (-65 points), Pakistan State Oil (PSO) (-41 points), Habib Bank Limited (HBL) (-38 points), United Bank Limited (UBL) (-34 points), and Hub Power Company Limited (HUBC) (-26 points).
The market’s sharp decline reflects the current volatility and investor sentiment, highlighting the challenges faced by the PSX amid broader economic uncertainties.