KARACHI/ISLAMABAD: The Pakistan Stock Exchange (PSX) saw a massive drop of over 6,000 points on Thursday, which financial analysts attributed to heavy selling in the market and geopolitical tensions between Iran and the US.
The KSE-100 index fell by 6042.26 points or 3.21 percent to close at 182,338.12 on Thursday evening, the PSX data showed, down from the previous close of 188,380.38 points.
The development took place as US President Donald Trump warned Iran this week that “time is running out” for the nation to negotiate a deal on its nuclear program, following the steady build-up of US military forces in the Gulf.
Meanwhile, Pakistani brokerage firm Topline Securities said equities witnessed a sharp sell-off in the stock market on Thursday, causing Pakistani stocks to plunge into a “severe downturn.”
“The steep decline was largely driven by Fauji Fertilizer Company’s (FFC) earnings announcement, which fell short of market expectations due to weaker-than-anticipated gross margins,” Topline Security’s Senior Equity Trader Naveed Nadeem said.
Nadeem noted that the FFC, United Bank Limited (UBL), Engro Corporation (ENGROH), Oil & Gas Development Company (OGDC), and Hub Power Company (HUBC) collectively shaved 3,155 points off the benchmark index during the session.
Najeed Warsi, chief business officer at Al Habib Capital Markets, agreed.
“FFC’s [Fauji Fertilizer Company] below-expectation results didn’t help, triggering a sell-off,” he added.
Ahsan Mehanti, CEO of Arif Habib Commodities, said geopolitical tensions between Washington and Tehran triggered the selling activity as well as the central bank’s recent decision to keep policy rate unchanged.
“Geopolitical uncertainty and SBP [State Bank of Pakistan] status quo in the policy rates projecting high inflation played a catalyst role in selling activity at PSX,” he said.
Pakistan’s central bank held its key policy rate unchanged at 10.50 percent on Monday, defying market expectations for further easing.











