The Pakistan Stock Exchange’s (PSX) benchmark index KSE-100 plunged over 5,000 points on Thursday.

The KSE-100 declined by 5,405.48 points or 3.41 per cent to close at 152,907.96 from the previous close of 158,313.44.

The index rose to an intraday high of 157,591.23 points at around 10:05am, and then declined to an intraday low of 152,668.07 points at around 3:15pm, before settling at 152,907.96.

According to Topline Securities, “the market experienced sustained selling pressure throughout the day”.

It added that the index “predominantly” traded in “negative territory as investors remained cautious amid persistent volatility in international oil prices and ongoing global uncertainty”.

Topline Securities noted that “key index-heavy stocks, including United Bank Limited, Fauji Fertiliser Company, Engro Holdings Limited, Lucky Cement Limited, and the Hub Power Company Limited, acted as major drags on the market”.

It said that the companies “collectively” pulled the index down “by approximately 2,138 points during the session”. It added that in terms of volume, K-Electric Limited “led the activity chart, with over 96 million shares traded during the day”.

“The total traded volume for the session stood at 521m shares, while the overall traded value was recorded at Rs27 billion,” it added.

On Wednesday, value-hunting had lifted the benchmark index above the 158,000 mark amid cautious optimism over easing geopolitical tensions in the Middle East.

Analysts attributed the positive momentum a day earlier to softer international oil prices and expectations of de-escalation in regional tensions, which bolstered investor confidence.

Topline Securities on Wednesday said the market’s upward trajectory was supported by strong performances from index-heavy stocks, including MCB Bank, Fauji Fertiliser Company, Systems Ltd, Lucky Cement and Hub Power Company, which collectively added 1,613 points to the index.

Trading activity remained robust on Wednesday, with total volume recorded at around 612 million shares and turnover at Rs34.5 billion. Unity Foods led the volumes chart, with approximately 72m shares traded.

Ali Najib of Arif Habib Ltd said the PSX witnessed broad-based buying, with the benchmark index gaining 2.82pc as sentiment improved on the back of easing geopolitical concerns.

He noted that renewed diplomatic efforts, including Pakistan’s role in facilitating dialogue between the United States and Iran, helped fuel optimism about a potential de-escalation.