KARACHI: A bearish spell gripped the Pakistan Stock Exchange (PSX) as losses extended into a fifth consecutive session on Thursday amid directionless trading, with nervous investors trimming their positions due to an uncertain economic outlook.

Topline Securities Ltd said the PSX witnessed another volatile trading session, with the benchmark index swinging sharply throughout the day amid cautious investor sentiment. The index touched an intraday high of 1,077 points and a low of 1,052 points before settling at the 166,498.84 level, down 952.30 points, or 0.57 per cent.

Market participants remained wary due to the lack of tangible progress in ongoing negotiations and persistent uncertainty over US-Iran developments. Adding to the pressure, elevated international oil prices continued to dampen investor confidence, keeping overall market sentiment fragile throughout the session.

At the T-bills auction overnight, the yield on the six-month tenor crossed the 12pc mark, reaching 12.26pc, the highest level seen in one-and-a-half years. Rising yields were attributed to higher inflation expectations amid elevated oil prices. Recently, the six-month yield touched a low of 9.83pc in January this year. From that level, yields have risen by 243bps.

Index drops 952 points amid economic uncertainty

Index-heavy stocks, including United Bank Ltd, Systems Ltd, Bank Alfalah Ltd, Fauji Fertiliser Company Ltd and Pakistan Petroleum Ltd, remained under selling pressure, collectively dragging the index lower by 580 points. Conversely, Javedan Corporation Ltd, Fauji Cement Company Ltd, Service Industries Ltd, TRG Pakistan, and Cherat Cement provided some support, adding a combined 101 points.

In bearish conditions, higher investor participation reflected panic-selling as trading volume rose 3.08pc to 706 million shares, while traded value fell 8.36pc to Rs19.9 billion. Bunny’s Ltd led the volume chart, with 115 million shares traded during the session.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market opened on a positive note amid optimism surrounding the anticipated visit by the US president to China, raising hopes of easing geopolitical tensions. However, investor sentiment remained cautious due to the absence of tangible progress in ongoing negotiations and continued uncertainty over geopolitical developments involving the US and Iran.

On power sector reforms, Power Minister Awais Leghari said Pakistan is steadily reducing its dependence on imported fuels for electricity generation.

Published in Dawn, May 15th, 2026