PSX slips 721 points over mounting ME tensions

Index comes under pressure on soaring oil prices; refineries emerge as key outperformers

KARACHI/JOHI:

Pakistan Stock Exchange (PSX) lost around 720 points on Monday as investor selling kept the benchmark KSE-100 index under pressure in the face of escalating geopolitical tensions, rising international oil prices and cautious sentiment.

Stock offloading was observed in key sectors, including automobile assemblers, cement, commercial banks, oil marketing companies, oil and gas exploration and power generation. Investors remained cautious as oil prices rose nearly 3% after the United States attacked an Iranian island in the Strait of Hormuz and Tehran retaliated, extending the conflict into its sixth month. The escalation also weighed on Asian markets, with major regional equities declining during the day.

The index lost 570 points within minutes of the start of trading. It hit the intra-day high of 178,138.69 and low of 176,944.91 and eventually settled at 176,975.68, down 720.83 points, or 0.41%, at close.

According to Ahmed Sheraz of KTrade Securities, the KSE-100 closed down by 721 points with 494 million shares traded. The market stayed under pressure as selling in commercial banks, cement and technology stocks weighed on the index, with United Bank, Systems Ltd, Habib Bank and Lucky Cement being the major negative contributors.

Refineries stood out as the key outperformers, where Pakistan Refinery, National Refinery and Attock Refinery posted notable gains amid expectations about the signing and execution of plant upgrade projects in the coming month. This selective strength lent some support, though it was insufficient to offset the broader weakness.

Looking ahead, Sheraz anticipated the market to remain cautious amid renewed US-Iran escalation and a sharp rise in oil prices, with Brent trading near $91 per barrel, up nearly 6% day-on-day. "With the results season and August now behind us, September's market direction may largely hinge on regional developments, crude prices, inflation expectations and the broader macroeconomic outlook," he said.

Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib commented that the PSX witnessed further consolidation, when the KSE-100 dipped 721 points. The market remained range bound, continuing last week's consolidation phase, while the refinery sector enjoyed strong buying ahead of expected plant upgrade agreements.

National Refinery and Pakistan Refinery hit their upper circuits, while Attock Refinery and Cnergyico gained 8.44% and 7.31%, respectively. Indus Motor reported FY26 profit after tax of Rs25.5 billion, up 11% year-on-year, while fourth-quarter profit fell 5% to Rs6.1 billion. The company declared a dividend per share of Rs47 for Q4, taking the cumulative FY26 payout to a record Rs195 per share.

Najib said selective profit-taking and stock-specific volatility were expected amid the ongoing result season, while geopolitical developments and oil prices would remain key market drivers. Month-on-month, the KSE-100 closed marginally up by 0.5%, reflecting a lack of fresh triggers and limited progress in US-Iran peace negotiations.

Overall trading volumes jumped to 937 million shares compared with Friday's total of 658 million. The value of traded shares stood at Rs39 billion. In the ready market, shares of 503 companies were traded. Of these, 169 stocks closed higher, 302 fell and 32 remained unchanged. Cnergyico was the volume leader with trading in 293 million shares, rising Rs1.05 to close at Rs15.46. Foreign investors sold shares worth Rs1.05 billion, according to the National Clearing Company.