PSX Falls Below 165,000 as Political Turmoil Jolts InvestorsBusiness

Investor unease persisted despite the finance minister’s optimism that GDP growth would exceed four percent this fiscal year, even with the oil shock. Economic concerns kept buyers on the sidelines as the political outlook stayed uncertain.

Pakistan Telecommunication Company, United Bank, Habib Bank, Lucky Cement and Mari Energies emerged as the major laggards, collectively wiping out 343 points and weighing heavily on overall market performance.

Investor participation improved on the day, with trading volume rising 5.72 percent to 384 million shares, though traded value dipped 9.67 percent to Rs13.1 billion. Out of 500 companies that traded in the ready market, 223 posted gains, 226 suffered losses, while 51 remained unchanged, reflecting the bearish tilt of the session.

<h2>Volatile session</h2> Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX recorded a mixed and volatile session, opening higher after the previous day&#8217;s selloff and climbing to an intraday high of 166,071. However, profit-taking at higher levels curtailed the recovery, pushing the benchmark into negative territory and resulting in a lower close.

On the sectoral front, auto sales for cars, LCVs, vans and jeeps fell 3 percent month-on-month and 12 percent year-on-year to 15,100 units in September. Nevertheless, cumulative sales in the first quarter of FY27 rose 19 percent to 50,500 units.

Analysts expect the market to remain volatile amid domestic political uncertainty. Selective value buying may offset further downside risks, but investors are advised to remain cautious, prioritise fundamentally strong stocks and avoid aggressive positions until sentiment stabilises.

Near-term market direction is likely to hinge on developments in key economic indicators, institutional activity and investor positioning as the political situation in Khyber Pakhtunkhwa continues to unfold.