Pakistan stocks extend losses amid rollover pressure, NDMA flood alert

KARACHI: The Pakistan Stock Exchange (PSX) extended its losing streak on Wednesday, as rollover week jitters kept investors cautious while flood warnings from the National Disaster Management Authority (NDMA) further dampened sentiment.

The NDMA warned of a “very high to exceptionally high” flood risk in Lahore and parts of Punjab following heavy rains and India’s release of water, with army assistance sought in six districts, Topline Securities said.

The benchmark KSE-100 index closed 941 points lower, slipping below the 147,500 mark. Despite an early rebound, selling pressure and risk aversion weighed heavily on the market.

“Stocks closed lower amid pressure after SBP projected thin growth at 3.2 per cent for the financial year (FY26). Institutional profit-taking on high leverage and futures contracts rollover at PSX, an expected rise in inflation data, the proposed hike in industrial gas tariff, and political noise all played a catalytic role in the bearish close,” said Ahsan Mehanti, CEO at Arif Habib Commodities.

Investor sentiment stayed subdued during rollover week, while expectations of weaker cement and fertilizer dispatches due to heavy rains and floods, coupled with softer banking sector profitability, weighed further on the market, according to Al Habib Capital.

Additionally, delays in resolving circular debt payments dampened confidence. However, auto financing provided some support, rising for the fifth consecutive month to a 25-month high of Rs286 billion in July 2025, helping limit a deeper decline.

On the performance board, gains in MEBL, ENGROH and MCB added 137 points, but these were outweighed by losses in HBL, FATIMA, SRVI, NBP and MARI, which collectively dragged the index down by 331 points.

Market participation improved, with volumes rising to 855 million shares and a traded value of Rs29.3 billion. PACE led the chart with 87.7 million shares changing hands.

Looking ahead, heightened rollover activity and flood concerns are likely to keep the market volatile, with investors expected to remain cautious in the coming sessions.