PSX falls below 170k over regional conflict

KSE-100 index erases gains, decreases 825 points amid IMF review

KARACHI:

Pakistan Stock Exchange (PSX) came under renewed selling pressure on Tuesday, with the benchmark KSE-100 index shedding 825.22 points, or 0.48%, as concerns over prolonged Middle East tensions and elevated oil prices weighed on investor sentiment.

The index started off on a strong note, climbing 324.35 points, or 0.19%, to 170,749.97 by 9:38 am, but reversed course later and remained in the red by the close of trading. It touched the intra-day high of 170,944.35 and low of 169,538.23 before settling at 169,600.41.

Earlier, resilience was observed in auto assemblers, cement firms, commercial banks, fertiliser manufacturers, oil and gas exploration and oil marketing companies, but broad-based selling erased gains. Global developments remained a key drag as diplomatic efforts to resolve the US-Iran conflict continued without a breakthrough. Also, oil prices stood higher as geopolitical uncertainty clouded the outlook for Middle Eastern supplies.

The domestic economic backdrop remained in focus as well after Pakistan and the International Monetary Fund (IMF) formally kicked off talks for the fourth review of the $7 billion Extended Fund Facility and third review of the Resilience and Sustainability Facility. Finance Minister Muhammad Aurangzeb held the opening meeting with the visiting IMF mission in the backdrop of a challenging external environment.

JS Global analyst Mubashir Anis Naviwala observed that selling pressure persisted at the PSX, where the benchmark KSE-100 index shed 825 points. The market stayed under pressure throughout the session and late selling pushed it to the intra-day low of 169,538. Commercial banks, oil & gas, fertiliser and cement stocks were among the major laggards while chemical and tobacco stocks posted modest gains, he said.

According to Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib, the PSX experienced another mixed trading session as the KSE-100 index slid 825 points to settle at 169,600, breaching the key psychological level of 170k after a gap of seven trading sessions.

Market sentiment remained weak in the backdrop of rising international oil prices due to US-Iran tensions and supply disruption risks in the Strait of Hormuz, which directly impacted Pakistan through increased energy import costs and external economic pressure.

Moreover, finance ministry officials were engaged in key review discussions with the IMF to stabilise the economy. On the corporate front, Air Link Communication reported FY26 net profit of Rs6,226 million, up 31% YoY, propelled by strong gross margins and tax reversals including a Q4 profit jump of 36% YoY to Rs2,579 million. Despite skipping Q4 payout, the company paid total FY26 dividend of Rs2 per share.

UBL, Fauji Fertiliser, Pakistan Petroleum, HBL, Mari Energies, Engro Holdings, PSO, Systems Ltd, Pakistan Services and Bank Alfalah collectively erased 556 points from the index. Najib expects market sentiment to remain volatile, with selective buying if geopolitical tensions ease.

Cumulatively, trading volumes rose to 568 million shares compared with Monday's tally of 421 million. The value of traded shares stood at Rs20.8 billion.

Of the 496 companies traded in the ready market, 154 closed higher, 305 fell and 37 stood unchanged. Cnergyico was the volume leader with trading in 56.5 million shares, losing Rs0.23 to close at Rs13.09. Foreign investors sold shares worth Rs132.8 million, according to the National Clearing Company.