The Pakistan Stock Exchange (PSX) continued its downward trajectory on Thursday, with the benchmark KSE-100 Index plunging 1,732 points, or 1.09%, to close at 156,733 — marking a new closing low and breaching the previous trough of 158,443 recorded on October 13, 2025.

Investor sentiment remained fragile amid escalating regional tensions following the collapse of Islamabad–Kabul talks, which dampened hopes for cross-border trade and economic stability. “The diplomatic setback fueled risk aversion and triggered institutional selling across key sectors,” said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.

Read: PSX extends bear run, dips 2,063 points

The session initially opened on a positive note, with the index hitting an intraday high of 159,507 points (+1,042 points or +0.66%) on selective buying. However, the momentum fizzled out as broad-based profit-taking dragged the market deep into negative territory by the close.

Heavyweight counters including Engro Corporation (ENGRO), Bank of Punjab (BOP), Systems Limited (SYS), United Bank Limited (UBL), MCB Bank (MCB), Thal Limited (THALL), Bank Alfalah (BAFL), Mari Petroleum (MARI), Service Industries (SRVI), and Pakistan Petroleum (PPL) collectively erased 1,538 points from the benchmark.

Read More: PSX extends losing streak as index plunges 2,062 points

Despite the decline, overall activity remained robust, with 846.8 million shares traded, valuing at Rs37.5 billion. BOP led the volumes with 84.1 million shares changing hands.

Analysts noted that the index’s slide below the 157,000 level reflects the persistence of bearish sentiment. “A recovery above 160,000 in the final session of the week will be crucial to restore investor confidence and hint at short-term stabilisation,” they added. “Failure to rebound could expose the market to further downside in the sessions ahead.”