The Pakistan Stock Exchange (PSX) came under selling pressure on Wednesday as investors reacted to renewed tensions between Pakistan and Afghanistan, coupled with mixed corporate earnings. The benchmark KSE-100 index dropped 1,635.97 points, or 1.02%, to close at 158,465.06.

The index fluctuated between the high of 160,690 and low of 158,307. Investor sentiment remained weak after peace talks between Islamabad and Kabul failed to yield progress. Analysts believe that the market correction phase is likely to continue in the near term as traders remain cautious amid uncertain political and economic conditions.

KTrade Securities noted that the PSX continued to face selling pressure as the absence of positive catalysts further dampened investor confidence. The KSE-100 index dropped 1,636 points, settling at 158,465. It attributed the decline to multiple factors, including the breakdown of negotiations between Pakistan and Afghanistan, which hurt sentiment, as well as margin calls and institutional selling that intensified market volatility.

Notable selling was witnessed in stocks such as Lucky Cement, United Bank, Mari Energies, MCB Bank, Engro Fertilisers and Bank AL Habib. Conversely, National Bank provided some support after announcing strong quarterly results.

Looking ahead, investor sentiment is expected to remain cautious during the rollover week, as traders adjust their futures positions. Additionally, the corporate earnings season will continue to play a key role in shaping short-term market direction, KTrade added.

Arif Habib Limited (AHL) commented that October lows for the index, around 158,000, “are now under threat and likely to be tested in the upcoming sessions”. Some 19 stocks advanced while 78 declined, with National Bank (+2.31%), Thal Limited (+5.99%) and Bank Alfalah (+0.85%) contributing the most to index gains. Lucky Cement (-2.29%), UBL (-1.26%) and Mari Energies (-2.04%) were the biggest index drags.

AHL mentioned that NBP reported 9MCY25 earnings per share (EPS) of Rs30.88, marking a 16-fold year-on-year (YoY) increase. Pakistan Petroleum announced 1QFY26 EPS of Rs7.38, down 15% YoY, along with a dividend of Rs2 per share, while Oil and Gas Development Company (OGDCL) reported 1QFY26 EPS of Rs8.91, down 7% YoY, accompanied by a Rs3.5-per-share dividend. AHL added that a recovery may emerge after six consecutive sessions of decline that dragged the KSE-100 down by 6%.

Topline Securities observed that Wednesday’s trend mirrored the previous session, with the KSE-100 initially opening on a positive note and gaining 589 points. However, selling pressure soon intensified, pulling the index down by 1,635 points.

The market continued its corrective phase as investors reacted to mixed corporate results, where some firms posted robust earnings while others missed expectations. Margin calls on leveraged positions further accelerated the decline, while volatility remained high due to the ongoing futures rollover week, it said. Overall trading volume decreased to 951.8 million shares compared with Tuesday’s tally of 1.02 billion shares. Traded value stood at Rs41.3 billion.

Shares of 478 companies were traded, of which 123 closed higher, 314 declined and 41 remained unchanged.

K-Electric led the volume chart with 93 million shares, rising Rs0.17 to close at Rs5.44. It was followed by Hascol Petroleum with 54 million shares, gaining Rs0.25 to close at Rs15.54 and WorldCall Telecom with 51 million shares, edging up Rs0.01 to close at Rs1.80. Foreign investors were net buyers of shares worth Rs657.7 million, according to the NCCPL.