The Pakistan Stock Exchange suffered a sharp selloff on Friday as the benchmark KSE-100 Index plunged more than 2,800 points during midday trading. The index lost 2,858.75 points, or 1.58%, to fall to 178,539.46 before trading was suspended. The decline erased recent gains and reflected growing caution among investors amid global and domestic uncertainties.
The market began the session on a positive note and extended the momentum from Thursday’s rally. The KSE-100 Index climbed to an intraday high of 182,185.87 after gaining around 887 points in the previous session. However, sentiment quickly reversed as selling pressure intensified across key sectors.
As the session progressed, the benchmark index dropped to an intraday low of 178,489.02. Trading activity remained strong, with volume reaching approximately 283.7 million shares and turnover standing at Rs22.67 billion. Market participants largely engaged in profit-taking after the recent upward trend.
Analysts said the downturn was driven by a combination of profit-booking and cautious investor sentiment. Concerns over global economic conditions, domestic macroeconomic factors and a broader risk-off mood weighed on buying activity. The impact of a hawkish stance from the US Federal Reserve also contributed to investor caution.
Banking, energy and textile stocks recorded mixed performance, while several blue-chip companies came under notable pressure. The decline follows a period of strong market performance supported by optimism over improving regional stability after the Pakistan-brokered US-Iran agreement. However, the absence of fresh positive triggers limited investor confidence and accelerated the market’s downward move.