PSX Suffers Sharp Losses as Flood Fears Take Toll
The Pakistan Stock Exchange (PSX) witnessed another turbulent session on Wednesday, as investor sentiment deteriorated following reports of severe flooding in northern Pakistan. The KSE-100 index dropped 941.03 points, or 0.63%, to close at 147,494.03, marking its fifth consecutive day of losses.
Market Momentum Reverses Mid-Session
The index began trading on a positive note, climbing steadily during the morning to reach an intra-day high of 149,238 points. However, optimism faded quickly as news of flooding — described as causing significant human and economic losses — circulated mid-session.
By the closing bell, the benchmark had slipped to the day’s low of 147,337 points, underscoring the sharp reversal.
JS Global analyst Muhammad Hasan Ather commented that profit-taking, coupled with the lack of fresh triggers, weighed heavily on equities:
“Selling pressure intensified towards the close, dragging the index sharply lower. We expect subdued activity going forward.”
NDMA Flood Warning Dampens Sentiment
According to NDMA, “very high to exceptionally high” flood risks persist in Lahore and several districts of Punjab following heavy rains and water releases from India. The authority confirmed that army assistance has been sought in six districts.
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Topline Securities noted that contract rollover week jitters further contributed to investor caution, extending the market’s losing streak.
Sector-Wise Performance
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Gainers: Meezan Bank (+0.95%), Engro Holdings (+0.61%) and MCB Bank (+0.79%) collectively added 137 points to the index.
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Decliners: Habib Bank (-1.38%), Fatima Fertiliser (-5.21%), Service Industries (-6.42%), National Bank and Mari Petroleum dragged the index down by 331 points.
Arif Habib Limited (AHL) highlighted that the downtrend reflects a mix of panic-driven selling and ongoing uncertainty regarding the floods.
Market Breadth & Volumes
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Advancers: 129
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Decliners: 312
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Unchanged: 36
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Total Companies Traded: 477
Trading volumes rose to 856.7 million shares (vs. 665.4m on Tuesday), while traded value stood at Rs29.3 billion.
Most active stocks:
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Pace (Pakistan): 87.8m shares, +Rs1 to Rs7.06
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Bank Makramah: 58.9m shares, +Rs0.39 to Rs5.29
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TPL Properties: 42.7m shares, +Rs0.45 to Rs10.69
Foreign investors sold equities worth Rs638 million, according to the National Clearing Company of Pakistan.
Macro News: Panda Bonds in Focus
On the macroeconomic front, Finance Minister Muhammad Aurangzeb signaled that Pakistan may return to international capital markets later this year or in 2026, most likely by issuing Panda bonds in China. He is expected to accompany Prime Minister Shehbaz Sharif at the Shanghai Cooperation Organisation (SCO) conference next week.
Outlook
With floods dominating headlines and rollover week underway, analysts expect the market to remain volatile and risk-averse in the near term. Heavy rainfall warnings from the Pakistan Meteorological Department suggest continued caution among investors.
