KARACHI: After overnight snapping of a three-session downturn, the equities fell like a house of cards at Pakistan Stock Exchange (PSX) on Thursday as super tax started taking its toll on corporate profitability, which triggered panic-selling by investors across the board, dragging the benchmark KSE-100 index down by over 4,000 points below 179,000 intraday.

However, late value hunting towards the end of the session helped the index trim some of its staggering losses and managed to settle above the 180,000 milestone. However, the equity investors lost over Rs271.7bn in market capitalisation in a single session.

Topline Securities said bears came out swinging, tightening their grip on the market right from the opening bell. Sentiment turned sour after Engro Fertiliser’s 4Q2025 results fell short of street expectations due to lower-than-expected gross margins, along with the one-time recognition of a super tax charge of Rs2bn, which reduced earnings per share to Rs6.26 and a muted dividend payout of Rs4.

The disappointment acted as a trigger, shifting momentum decisively in favour of the sellers.

KSE-100 index sheds 2,537 points amid panic sell-off

The index remained under relentless pressure throughout the session, nosediving to an intraday low of 4,324.56 points before closing at 180,512.65, down 2,537.16 points or 1.40 per cent. Local institutions appeared to lead the selling charge, keeping bulls firmly on the defensive.

The E&P sector took the heaviest hit, with Pakistan Petroleum Ltd (PPL) and Oil and Gas Development Company Ltd (OGDCL) alone shaving off 383 points from the index. Meanwhile, Engro Fertiliser, Hub Power, Systems Ltd, and Bank Al-Habib collectively dragged the index down by another 645 points, amplifying the rout.

On the activity front, volumes remained robust at 873million shares, with turnover clocking in at Rs 41.7 billion. K-Electric dominated the volumes chart, churning 176 million shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), attributes the negative session to market sentiment succumbing to selling pressure amid rumours surrounding Barrick Gold’s recent comprehensive review of its “Reko Dik Project” investments, in the backdrop of deteriorating security situation in Balochistan.

Market sentiment retreated following reports that Barrick Gold is conducting a comprehensive review of its Reko Diq project amid concerns over the deteriorating security situation in Balochistan. The speculation triggered broad-based selling, particularly across energy sector stocks. However, value buying in the final trading hour helped the index cut some early losses.

Inflation, which rose to 5.8pc in January, is expected to climb toward 8pc, dimming hopes of any near-term softening of monetary policy. IMF urges a tight stance; FY26 inflation seen averaging 6.2pc amid oil risks, reported Bloomberg.

Market participation remained higher than the previous session, with trading volume rising almost 19pc to 874m shares and traded value increasing 18pc to Rs41.7bn, indicating investors rushed to exit amid persistent volatility.

Analysts think a close above the 180,000 level in the final session of the week is crucial to signal continued consolidation and stability. Failure to hold this threshold could expose the index to further downside pressure in the coming sessions.

Published in Dawn, February 13th, 2026