KMI-30 Falls 9,670 Points as PSX Sees Heavy Selling in Fertilizer and Energy Stocks

The Pakistan Stock Exchange (PSX) witnessed a sharp bearish session on Thursday as selling pressure dominated trading throughout the day, dragging the KMI-30 index significantly lower and erasing a large portion of recent gains. Investors remained cautious amid profit-taking, heavy institutional sell-offs, and uncertainty surrounding market momentum.

According to the official market wrap, the KMI-30 index opened the session at 267,623.75 points. Early trading showed limited stability as the benchmark briefly climbed to an intraday high of 268,223.27 points. However, the positivity proved short-lived as aggressive selling soon gripped the market, pulling the index down to an intraday low of 256,667.26 points.

By the closing bell, the index settled at 257,527.87 points, marking a steep decline of 9,670.01 points. The drop translated into a negative change of 3.62 percent, making it one of the most volatile sessions of the month. Market analysts described the fall as broad-based, with heavyweight stocks contributing heavily to the downturn.

Trading activity remained moderate, with index constituent volume recorded at 176.88 million shares. Despite the healthy turnover, sentiment stayed weak as investors opted to book profits and reduce exposure to key sectors, particularly energy, cement, and fertilisers.

Sector-wise, major draggers weighed heavily on the index. Fauji Fertiliser Company (FFC) led the decline, shaving off 3,276.23 points from the benchmark. Engro Holdings followed with a negative contribution of 1,069.30 points, while Oil and Gas Development Company (OGDC) trimmed 742.61 points. Pakistan Petroleum Limited (PPL) and Hub Power Company (HUBC) also added to the losses, collectively deepening the bearish trend.

Market experts believe that the correction is largely technical after recent rallies pushed valuations higher. “Investors are locking in profits, which is natural after consecutive bullish sessions,” a senior market analyst said, adding that short-term volatility may persist before stability returns.

Despite the day’s losses, the broader performance indicators still paint a mixed picture. The fiscal year-to-date (FYTD) return remains strong at 39.29 percent, showing that the market has delivered impressive gains over the longer term. Meanwhile, the calendar year-to-date (CYTD) performance stands at negative 3.62 percent, reflecting recent pressure.

Financial strategists suggest that macroeconomic cues, policy signals, and foreign investor participation will determine the next direction. They also advise retail investors to adopt cautious strategies and avoid panic selling during temporary corrections.

Overall, Thursday’s session underscored the fragile sentiment prevailing in the local equity market. While the steep drop unsettled traders, analysts maintain that such pullbacks are part of healthy market cycles. If stability returns in the coming sessions, bargain hunters may re-enter the market, potentially supporting a recovery.

For now, the PSX remains under watch as investors assess risks and await fresh triggers that could restore confidence.