The Pakistan Stock Exchange witnessed a notable shift in momentum as early gains faded amid aggressive profit-taking during the closing hours, dragging the benchmark KSE-100 index deep into the red by the end of trading.

The session began on a bullish note on Wednesday, buoyed by encouraging corporate earnings and signs of macroeconomic stability. This initial optimism pushed the KSE-100 up by more than 500 points soon after the opening bell, with the index peaking at 168,163.22, its highest level of the day.

However, momentum fizzled as trading progressed. The market entered a sluggish phase, moving sideways for several hours before bearish sentiment took over in the final stretch. A wave of selling — mainly from investors locking in gains — sent the index tumbling to an intra-day low of 166,230.89.

By the close, the KSE-100 had shed 793.56 points, settling at 166,553.28, down 0.47% from the previous day. 

Analysts attributed the late-session dip to profit-booking ahead of key economic data releases and possible political developments expected to influence investor sentiment in the coming days. While Wednesday’s sell-off reflected caution, the strong opening suggested underlying investor confidence — a tug-of-war likely to define short-term market trends.

Arif Habib Limited (AHL), in its report, noted that “consolidation into support bodes well for additional gains for the rest of the week.”

Among individual stocks, 38 shares rose while 58 declined. Pakistan Petroleum (+3.21%), Oil and Gas Development Company (+0.87%), and PSX (+5.7%) were the biggest contributors to index gains. In contrast, Fauji Fertiliser (-2.1%), United Bank (-1.11%), and MCB Bank (-1.47%) were the main drags.

In major news, QatarEnergy officials are set to visit Pakistan next week to finalise Islamabad’s request to reduce gas shipments for next year amid weaker demand. Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) approved changes to PSX rules, making it mandatory for companies to hold corporate briefings on their annual financial results.

Ghandhara Automobiles (-2.13%) reported 1QFY26 EPS of -Rs29.33, a year-on-year increase of 178%, in line with expectations. Similarly, MCB Bank (-1.47%) posted 9MCY25 EPS of Rs37.42, down 16% YoY, along with a DPS of Rs27, also matching projections.

AHL anticipated support around the 166,000-point level to hold, expecting renewed buying interest to push the index higher in the coming sessions.

Overall trading volume declined to 1.56 billion shares compared with 1.82 billion a day earlier, while the value of traded shares stood at Rs55.06 billion. A total of 476 companies were traded, of which 203 closed higher, 232 fell, and 41 remained unchanged. K-Electric led volumes with 241 million shares, down Rs0.30 to close at Rs6.21.