Geopolitics, oil spike drag PSX down

KSE-100 index slips almost 500 points as regional tensions dent sentiment

KARACHI:

Pakistan Stock Exchange (PSX) closed lower on Thursday as the benchmark KSE-100 index lost around 500 points due to the intensifying war in the Middle East.

The market opened "gap-down" but found support near the 175,000 level. Trading remained under pressure throughout the session amid renewed geopolitical tensions involving the United States and Iran, which pushed international oil prices higher and heightened concerns over inflation.

The index briefly dropped as much as 1,430 points before recovering some ground. At the close of trading, the KSE-100 posted a decline of 495 points, or 0.28%, and settled at 175,547.98.

Arif Habib Limited (AHL) observed that the PSX opened "gap-down" but found support near 175,000 where buyers stepped in. At close, the KSE-100 shed 495 points. Market breadth remained weak, with only 28 stocks advancing against 72 decliners. Fauji Fertiliser Company, UBL and Engro Fertilisers provided the main support to the index, rising 1.14%, 1.03% and 1.57%, respectively. On the downside, Engro Holdings, Lucky Cement and Systems Ltd emerged as the heaviest drags, falling 2.25%, 1.76% and 1.93%.

Geopolitical developments continued to influence sentiment. Pakistan's foreign ministry spokesperson Tahir Andrabi said negotiations between the US and Iran remained "ongoing" in an effort to restore stability, particularly in the Strait of Hormuz, AHL mentioned.

On the corporate front, EFERT reported 2QCY26 net profit of Rs3.8 billion (EPS Rs2.85), down 32% year-on-year, which reflected weaker fertiliser offtake. Bank Alfalah posted profit after tax of Rs10 billion (EPS Rs3.22) for the second quarter, up 27% year-on-year and 7.6% quarter-on-quarter, it added.

"Geopolitical tensions kept investors on edge," Topline Securities noted in its market review. The local bourse remained under pressure throughout the trading session as investor sentiment weakened following fresh attacks involving the US and Iran, reigniting geopolitical tensions and driving international oil prices higher. The KSE-100 index plunged to the intra-day low of 1,430 points before recovering some of the losses to settle at 175,548, down 495 points (-0.28%).

Topline said that the surge in global oil prices heightened concerns over inflationary pressures and their impact on the broader economy, prompting investors to adopt a cautious stance. Although the market recouped a significant proportion of its intra-day losses, persistent uncertainty surrounding the geopolitical situation kept the buying interest subdued. ENGROH, LUCK, SYS, HUBC and PPL emerged as the major laggards, eroding 547 points from the benchmark index.

Overall trading volumes were recorded at 711.20 million shares compared with the previous session's tally of 574.08 million. The value of shares traded during the day was Rs25.40 billion.

Shares of 495 companies were traded. Of these, 175 stocks closed higher, 279 fell and 41 remained unchanged.

Trust Brokerage was the volume leader with trading in 176.88 million shares, gaining Rs0.26 to close at Rs2.53. It was followed by WorldCall Telecom with 32.31 million shares, losing Rs0.01 to close at Rs1.19 and Pakistan International Bulk Terminal with 32.13 million shares, gaining Rs0.24 to close at Rs17.01. Foreign investors sold shares worth Rs255 million, the National Clearing Company reported.