Pakistan’s stock market faced heavy selling pressure on Friday as the Pakistan Stock Exchange witnessed one of its sharpest single-day declines in recent sessions, pushing the benchmark index below a key psychological level.

The KSE-100 Index closed at 184,129 points after plunging 3,702 points, marking a decline of nearly 2 percent. The downturn reflected widespread investor caution and aggressive profit-taking across multiple sectors.

Market activity remained highly volatile throughout the trading session. At one point during intraday trade, the benchmark index dropped as much as 4,489 points, touching an intraday low of 183,547. Although some recovery was seen later in the session, the index failed to reclaim the 185,000 mark by the close.

Analysts attributed the sharp sell-off to heightened uncertainty in the market, as investors responded to both domestic and global risk factors. Concerns over economic stability, policy expectations, and external pressures continued to weigh on investor sentiment, resulting in broad-based selling.

Key heavyweight sectors came under pressure, including banking, oil and gas exploration, cement, and power generation stocks. Blue-chip shares saw significant losses, amplifying the downward momentum of the index.

Market participants noted that volumes remained elevated during the decline, indicating panic-driven selling rather than routine corrections. Institutional investors were largely on the selling side, while retail investors stayed cautious amid rapidly falling prices.

The breach of the 185,000 level is being closely watched by market observers, as it has served as a critical support zone in recent weeks. A sustained move below this level could trigger further technical selling in the near term if confidence is not restored.

Despite the sharp decline, some analysts believe the market could see selective recovery once uncertainty eases. They emphasize that Pakistan’s equity market has previously demonstrated resilience following steep corrections, particularly when clarity emerges on economic indicators and policy direction.

Investors are now expected to closely monitor upcoming economic data, government measures, and global market trends for cues. Stability in currency markets and progress on macroeconomic fronts could help ease pressure on equities in the coming sessions.

For now, caution dominates trading sentiment, with investors preferring a wait-and-see approach. Market experts advise participants to focus on fundamentally strong stocks and avoid panic decisions during periods of heightened volatility.