Middle East conflict weighs on PSX

Pakistan Stock Exchange (PSX) slipped into negative territory on Friday as cautious investor sentiment and fears of an escalation in the Middle East conflict triggered selling across major sectors.

The benchmark KSE-100 index closed at 181,430.02, down 346.57 points, or 0.19%, after hitting the intra-day high of 181,647.27 and the intra-day low of 180,620.08.

Investor interest remained subdued as concerns over widening geopolitical tensions overshadowed domestic triggers. Although Saudi Arabia, Turkey and Pakistan reaffirmed their commitment to mutual defence, fears that the Middle East conflict could escalate prompted market players to adopt a cautious stance ahead of the weekend.

Selling pressure was observed across most index-heavy sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, and oil marketing companies. Firmer international oil prices encouraged profit-taking, while selective late-session buying helped the market recover part of its losses.

Analysts explained that the decline reflected a cautious, risk-off mood rather than deterioration in domestic economic fundamentals, with investors expected to closely monitor developments in the Middle East and their implications for regional markets and energy prices.

Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib noted that the PSX registered a mixed session, where the KSE-100 closed on a subdued note at 181,430, down 347 points. The market opened on a cautious note and touched the intra-day high of 181,647 before early gains evaporated as investors squared off positions ahead of the weekend, resulting in a marginally negative close.

On the corporate front, Mari Energies posted record FY26 earnings of Rs87 billion, with fourth-quarter earnings per share of Rs31.2, up 99% year-on-year, supported by higher oil prices, increased production from the HRL field, the commencement of output from Spinwam and a tax reversal. Hub Power, Mari Energies, Cnergyico Pk, Ghani Glass and The Bank of Punjab added 187 points to the benchmark, while Engro Holdings, UBL, MCB, Engro Fertilisers and Fatima Fertiliser erased 332 points amid selective profit-taking.

Looking ahead, Najib expected the market to remain range bound as investors awaited fresh macroeconomic and corporate catalysts. Easing geopolitical tensions, stable oil prices and the ongoing earnings season may support sentiment, although profit-taking at higher levels could keep the index volatile, he added.

According to KTrade Securities, the trading session was mixed, where commercial banks, investment banks and fertiliser firms came under selling pressure, while gains in power and refinery sectors helped limit losses. The KSE-100 closed down by 347 points. Engro Holdings, UBL, MCB and Engro Fertilisers were the major drags whereas Hub Power, Mari Energies and Cnergyico Pk provided notable support.

"The market is likely to stay range bound in the near term as investors assess corporate earnings and macroeconomic developments. Sustained participation in heavyweight sectors could help the index regain positive momentum in upcoming sessions," KTrade wrote.

Topline Securities said the KSE-100 index remained under pressure for most of the session, although late buying helped the benchmark recover part of its intra-day losses before closing at 181,430, down 0.19%. The brokerage attributed the cautious sentiment mainly to the rebound in international oil prices, which encouraged investors to book profits ahead of the weekend.

Overall trading volumes decreased to 716 million shares compared with Thursday's tally of 793.4 million. The value of traded shares stood at Rs34.1 billion. In the ready market, shares of 492 companies were traded. Of these, 207 stocks jumped, 260 fell and 25 remained unchanged.

Cnergyico Pk was the volume leader with trading in 161.2 million shares, gaining Rs0.69 to close at Rs11.94. Foreign investors sold shares worth Rs1.07 billion, the National Clearing Company reported.