Pakistan Stock Exchange (PSX) witnessed a deeply volatile session, as sustained selling pressure overshadowed early gains and dragged the benchmark KSE-100 index sharply lower.

The market opened on a relatively firm note, with the index climbing to an intra-day high of 174,336.86 points during early trading hours. However, the positive momentum proved short-lived as profit-taking emerged at higher levels, sending the index downward amid heavy jitters.

Investor confidence remained fragile throughout the session, weighed down by escalating geopolitical strains, uncertainty ahead of the forthcoming IMF assessment, and uneven corporate earnings outlooks.

As the day progressed, selling pressure intensified across key index-heavy sectors. The index continued to drift lower through midday, reflecting cautious positioning and a lack of strong buying interest. In the final trading hour, the market experienced accelerated selling, pushing the benchmark to an intra-day low of 166,886.63 points.

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Broad-based weakness was observed across major sectors as investors reduced exposure amid prevailing macroeconomic and geopolitical uncertainties. The cautious mood was further amplified by positioning ahead of the IMF review, a key near-term trigger for market direction.

By the close, the KSE-100 index tumbled 5,478.63 points, or 3.16 per cent, to settle at 167,691.08.

On the corporate front, Oil & Gas Development Company Limited (OGDC) announced its highest-ever dividend for any first half, declaring Rs7.8 per share for 1HFY26. While the announcement reflected strong financial performance and healthy cash flows, it was insufficient to offset the broader market downturn.

“Even though some geopolitical tensions have eased, risk appetite remains fragile. Markets are still pricing uncertainty. Investors don’t wait for inflation prints, trade disruptions or macro data to confirm the damage — they sell first on heightened geopolitical risk, uncertainty and risk-off flows,” JS Global Head of Research Waqas Ghani said.

Topline Securities noted that the KSE-100 index concluded the session at 167,691 points, registering a decline of 5,478 points amid persistent volatility. During the trading day, the index fluctuated within a range of 174,336 to 166,886 points, largely influenced by rollover-week dynamics.

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Index-heavy constituents including Fauji Fertiliser Company, Lucky Cement, Engro Holdings, National Bank of Pakistan and Habib Bank Limited emerged as the principal laggards, collectively dragging the benchmark down by 1,797 points. Despite the decline, 461 million shares were traded with a turnover of Rs24.9 billion, Topline added.

Overall trading volume decreased to 461.2 million shares compared with the previous week’s close of 537.6 million. Shares of 479 companies were traded. Of these, 42 stocks closed higher, 389 fell and 48 remained unchanged. K-Electric was the volume leader with trading in 36 million shares, falling Rs0.37 to close at Rs7.66.