KSE-100 falls as banks drag index amid profit-taking

Selling by mutual funds and weak quarterly results push market lower.

Pakistan’s benchmark KSE-100 Index extended its losing streak on Thursday, declining by [verify]% to close at [verify] points, as mutual fund selling and profit-taking weighed on sentiment ahead of the futures rollover week.

The banking sector was the biggest drag on the market, with cumulative negative contribution of 877 points led by United Bank Ltd (UBL), Bank AL Habib Ltd (BAHL), Meezan Bank Ltd (MEBL), Habib Bank Ltd (HBL), Bank of Punjab (BOP), Askari Bank Ltd (AKBL) and Bank Alfalah Ltd (BAFL). The pressure stemmed from below-expectation September-quarter earnings, largely due to higher operating costs. MEBL’s unconsolidated 3Q2025 earnings per share (EPS) came in at Rs11.7, down 7.4% quarter-on-quarter and 13% year-on-year, alongside an interim cash dividend of Rs7 per share.

In contrast, The Searle Company Ltd (SEARL) in the pharmaceutical sector posted strong 1QFY26 results, reporting an unconsolidated EPS of Rs1.67, up 184% year-on-year, helping offset some of the market’s decline.

Trading activity remained brisk, with total volume at 1.03 billion shares and value amounting to Rs34.97 billion. BOP led the board with Rs2.37 billion in traded value, followed by SEARL (Rs2.11 billion), Pakistan Petroleum Ltd (PPL, Rs1.87 billion), K-Electric Ltd (KEL, Rs1.12 billion) and Pakistan State Oil (PSO, Rs982 million).

Market analysts noted that investor caution persisted due to mixed corporate earnings and the upcoming derivatives rollover. The KSE-100 has now lost ground for a third consecutive session, reflecting short-term consolidation after recent highs. Going forward, market direction may hinge on upcoming monetary policy cues and further earnings announcements from key sectors including banking and energy.

PSX-100 Index continues losing and sheds over 1000 points during the opening session of trading. It declined to 163545 points, down by 0.64 percent.

On Thursday, the KSE-100 Index ended the session at 164,590 points, recording a decline of 1,962 points.

The trading day remained notably volatile, reflecting mixed investor sentiment, as the index oscillated between an intraday high of 166,720 and a low of 164,395. The volatility was largely attributed to profit-taking ahead of the upcoming rollover week, coupled with disappointing financial results from Bank Al Habib and Bank Alfalah.

Among the major laggards, BAHL, HMB, LUCK, HUBC, and ENGRO collectively eroded 1,019 points from the benchmark index.

Despite the downturn, investor participation remained robust, with total traded volumes surging to 1,503 million shares, while market turnover stood at an impressive Rs. 49.4 billion.