KSE-100 Falls Over 2,500 Points on Selling Pressure

The Pakistan Stock Exchange (PSX) faced significant selling pressure on Thursday as the KSE-100 Index plummeted over 2,500 points. Despite a late-day partial rebound that provided some support, the index still closed in the red territory, reflecting cautious investor sentiment.

Selling intensified due to concerns about timelines and funding for the Reko Diq project, which has been a contentious issue with security risks highlighted around it. Sector-specific results also contributed to this trend, as EFERT’s disappointing 4Q2025 earnings report fell short of expectations, posting an EPS of Rs6.26 with a muted dividend payout (4Q DPS: Rs 4.0). This triggered a decisive shift in favor of sellers.

The sector hit hardest was the E&P division, where PPL and OGDC alone shaved off 383 points from the index. Meanwhile, EFERT, HUBC, SYS, and BAHL collectively pulled down the KSE-100 by another 645 points.

In a development that could pave the way for future cooperation between Pakistan and Saudi Arabia, a high-level delegation from the Kingdom of Saudi Arabia arrived in Islamabad to explore various sectors. Assistant Minister of Investment Ibrahim Al-Mubarak is currently in Islamabad, while another delegation led by Mohammad Al-Tuwaijri, Advisor at the Royal Court and Chair of the Pak–KSA Task Force, is visiting Pakistan for a final review workshop. This meeting aims to finalize the SP-ECF framework ahead of expected high-level visits.

On Wednesday, the PSX showed signs of recovery as selective buying in key sectors helped the benchmark KSE-100 Index regain some ground after previous losses. The index rebounded by 896.25 points, or 0.49%, to close at 183,049.81 points.

Despite these efforts toward recovery, analysts believe the market remains cautious and are likely to continue monitoring developments in both domestic and international sectors closely.