The Pakistan Stock Exchange landed in the red on Thursday as the benchmark KSE-100 index shed 204 points, or 0.41 per cent, by the close of the trading session to reach 49,958 points, just below the 50,000 mark.

The index tested the day's high at 50,290 points around an hour after trading opened but failed to sustain the momentum. The day's low of 49,875 came towards market close.

Trading activity was led by the engineering sector, with 43.5 million shares traded during the session.

"Renewed concerns over unretired circular debt in the energy sector played a catalyst role in a bearish close," said senior analyst Ahsan Mehanti.

Stocks closed sharply lower amid pressure on oil stocks amid a slump in global crude prices and concerns over foreign outflows at the bourse, he added.

He added that cement and banking stocks remained under pressure on higher tax levies in the federal budget.

A total of 64.8mn shares of KSE-100 index companies changed hands in the session, with a total worth of nearly Rs8.2 billion.

Stocks of 384 companies were traded, of which 149 gained in value, 221 declined and 14 remained unchanged.

Volumes were led by:

Bank of Punjab: 25.9m shares traded [-17.36pc];

Power Cement(R): 25.6m shares traded [-17.19pc];

Dost Steels Ltd: 22.5m shares traded [+4.09pc];

Azgard Nine: 13m shares traded [-0.58pc];

Dewan Farooque Sp: 12m shares traded [-10.94pc];