KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday continued its downward trend despite a bullish opening, as growing concerns on the economic and political fronts kept investors jittery, triggering late selling and forcing the benchmark KSE-100 index to close on a negative note for the second straight session.
Topline Securities Ltd said the PSX opened higher, supported by news that the government plans to address Rs1.49 trillion of the Rs3.6tr gas sector circular debt. The settlement plan is expected to be partly funded by higher dividends from state-owned E&Ps and increased petroleum development levy (PDL) collections.
The initial optimism pushed the index to an intraday high of 986 points at 178,942.31. However, the positive momentum quickly faded as aggressive selling pressure took over, sending the index to an intraday low of 1,317 points at 176,638.11.
The market ultimately settled at 176,846.36, down 1,109.15 points or 0.62 per cent, as early gains were completely erased and bears took firm control of the session.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said market sentiment weakened following media reports that the petroleum minister was set to negotiate with local refineries to reduce diesel prices, amid elevated fuel costs and global energy market disruptions. The development triggered broad-based selling across the refinery sector, weighing on the broader market.
United Bank, Engro Holdings, Habib Bank, Fauji Fertiliser, Attock Refinery, Meezan Bank, Mari Energies, Systems Ltd, Cnergyico PK and National Bank collectively erased 859 points from the benchmark index. On the positive side, Pakistan Petroleum, Pakistan Telecommunication Company, DG Khan Cement, International Steels and Fatima Fertiliser were the major gainers, collectively adding around 176 points.
Investor participation weakened as trading volume dipped 24.14pc to 787.89 million shares and traded value fell 22.02pc to Rs39.5bn. Cnergyico PK topped the volume chart with 217mn shares traded.
Analysts anticipate increased volatility and targeted profit-taking, as geopolitical developments and oil price fluctuations are expected to continue to shape market trends.
Published in Dawn, August 20th, 2026
