PSX rises 269 points as oil market steadies

Saudi supply recovery offers some relief; investors closely monitor regional risks

KARACHI:

Pakistan equities opened the week on a firmer footing on Monday, with the benchmark KSE-100 index gaining modest ground as easing oil prices and hopes for diplomatic progress on the US-Iran conflict encouraged buying interest.

Although the early rally lost some momentum, the KSE-100 still closed with thin gains of 268.58 points, or 0.16%, at 171,153.17. It traded between the intra-day high of 171,732.62 and low of 170,902.76. The positive sentiment was aided by the decline in crude prices as traders monitored the pace of Saudi Arabia's oil shipment recovery following missile and drone attacks by Yemen's Houthis on Saturday.

The improvement in Saudi shipments offered some relief to markets worried about prolonged disruptions to regional supplies, although continuous attacks by the Houthis kept concerns over the security of energy flows in focus. Meanwhile, Pakistan's power demand showed a meaningful recovery in Aug'26, rising 5.1% year-on-year to 14,943 megawatts and standing 1.4% above the seven-year August average. "While still below the 16,176 MW peak recorded in Aug'21, the rebound is encouraging for power-sector activity and broader economic growth," Arif Habib Limited (AHL) reported.

AHL's Ali Najib wrote that investor sentiment remained mixed amid declining oil prices as expectations of additional Saudi crude supply eased concerns. However, renewed tensions involving Saudi Arabia and Iran-backed Houthi forces kept investors cautious.

Lucky Cement, Attock Refinery, Fauji Fertiliser, Mari Energies and Engro Fertilisers added 255 points, while Pakistan Services, Meezan Bank, Systems Ltd, UBL & OGDC dragged the index down by 172 points.

"The market is expected to remain volatile, with selective buying if geopolitical tensions continue to ease and oil prices move down. However, elevated energy prices, external-sector risks and the upcoming IMF review will remain the key factors influencing market direction," he added.

According to KTrade Securities, the KSE-100 index closed up by 269 points (+0.16%) with 162 million shares traded. Sentiment remained mildly positive as Brent crude slipped towards $101 per barrel amid hopes for easing Red Sea tensions following US intervention, but stalemate continued at the Strait of Hormuz.

The upcoming UN General Assembly session could provide a platform for diplomatic engagement. Lower oil prices could support the PSX and Pakistan's external position; however, geopolitical developments around Hormuz remain the key risk. "Overall, the market may remain cautiously positive with volatility intact," KTrade expected.

JS Global analyst Mubashir Anis Naviwala commented that buying interest was observed at the PSX, where the benchmark index gained 269 points at close. The index remained volatile, moving within a relatively narrow range during the session. Cement and fertiliser were among the key positive contributors while refinery and oil & gas stocks also provided support.

International oil prices slipped to their lowest level in over a week amid hopes for diplomatic progress on the Middle East conflict. The market also eyed a partial recovery in Saudi oil shipments despite regional tensions. Overall, the session reflected selective buying and a cautious improvement in sentiment, Naviwala mentioned.

In the ready market, trading volumes increased to 692.9 million shares versus Friday's tally of 576.3 million. Shares of 494 companies were traded, out of which, 238 stocks closed higher, 213 fell and 43 stood unchanged.

Tasdeeq Information topped the volumes with trading in 119.6 million shares, rising Rs0.93 to close at Rs5. Foreign investors sold shares worth Rs333.3 million, the National Clearing Company reported.