Stocks slide about 1,350 points amid political anxiety

The Pakistan Stock Exchange (PSX) witnessed a sharp reversal on Thursday as early gains were wiped out by intensive selling, triggered by renewed political uncertainty. The benchmark KSE-100 index, which had climbed to the intra-day high of 151,250 points, tumbled later, hitting the low of 148,273. It closed the day at 149,235, down 1,356 points, or 0.90%. The sell-off emerged after the Supreme Court granted bail to former prime minister Imran Khan in May 9 cases, which sparked uncertainty about the political outlook. Major pressure came from index-heavy sectors such as commercial banks, cement and fertiliser, which endured broad-based selling. AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune that investor sentiment turned cautious amid political uncertainty following the Supreme Court’s acceptance of Imran Khan’s bail plea in May 9 cases. “Nevertheless, we expect falling interest rates amid the improving macroeconomic backdrop and stability in exchange rate to sustain the rally in equities,” he commented and mentioned that the KSE-100 delivered a 29% return this year. Read: SC grants Imran's bail in eight May 9 cases KTrade Securities wrote in its market wrap that the benchmark KSE-100 index started trading on a positive note but selling pressure emerged in the latter half following approval of Imran Khan’s bail by the Supreme Court. Consequently, the index dropped to intra-day low of 148,273 (-2,318 points) from intra-day high of 151,250 (+659 points) and closed in the negative territory at 149,235 (-1,356 points). Selling was observed in index-heavy sectors including commercial banks, cement and fertiliser, which contributed 818 points, 187 points and 128 points to the losses, AKD said. Arif Habib Limited Deputy Head of Trading Ali Najib commented that after three consecutive winning sessions, the PSX finally faced a wave of profit-taking that dragged the KSE-100 into the red. The day began on a strong footing, with the index touching intra-day high of 151,250, reflecting bullish momentum. However, political noise shifted the mood following media reports about the former PM securing bail. It triggered volatility and wiped out early gains, sending the market into a sharp downturn, he said. Yet, the storm settled quickly as clarification that the ex-premier would remain behind bars helped calm sentiment. “It was a session where politics overshadowed fundamentals, turning optimism into caution, but late recovery hinted at underlying resilience in investor confidence,” Najib remarked. Overall trading volumes increased to 1.1 billion shares compared with Wednesday’s tally of 667.8 million. Traded value stood at Rs55.8 billion. Shares of 480 companies were traded. Of these, 130 advanced, 323 dropped and 27 remained unchanged. Fauji Foods was volume leader with trading in 62.1 million shares, gaining Rs0.52 to close at Rs16.94.

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