PSX Falls 825 Points as Middle East Tensions Weigh on Investors

The Pakistan Stock Exchange (PSX) came under selling pressure on Tuesday. The benchmark KSE-100 index fell 825.22 points, or 0.48%.

The index closed at 169,600.41. It had opened on a stronger note and gained 324.35 points early in the session.

The KSE-100 reached an intraday high of 170,944.35. It later fell to a low of 169,538.23.

Selling Pressure Hits Major Sectors

The market initially showed strength across several sectors.

Auto assemblers and cement companies gained early in the session. Commercial banks and fertiliser stocks also showed resilience.

Oil and gas exploration companies and oil marketing firms also attracted buying.

The trend later reversed. Broad-based selling erased most early gains.

Study Examines Taylor Swift Fans and Climate Attitudes

Commercial banks, oil and gas companies, fertiliser firms and cement stocks were among the major laggards.

Chemical and tobacco stocks recorded modest gains.

Middle East Tensions Weigh on PSX

Geopolitical developments remained a key concern for investors.

Diplomatic efforts to resolve the US-Iran conflict continued without a breakthrough. Higher oil prices also added pressure to market sentiment.

Investors remained concerned about possible disruptions to Middle Eastern oil supplies.

Rising energy costs could also increase pressure on Pakistan’s external account.

JS Global analyst Mubashir Anis Naviwala said selling pressure continued throughout the session.

He noted that late selling pushed the KSE-100 to its intraday low.

IMF Talks Add to Market Focus

Domestic economic developments also remained in focus.

Pakistan and the International Monetary Fund have started talks for the fourth review of the $7 billion Extended Fund Facility.

The discussions also cover the third review of the Resilience and Sustainability Facility.

Finance Minister Muhammad Aurangzeb held the opening meeting with the IMF mission.

The talks come as Pakistan faces a challenging external economic environment.

Air Link Reports Strong Profit Growth

Corporate developments provided some support during the session.

Air Link Communication reported a net profit of Rs6.226 billion for FY26. The figure represents a 31% year-on-year increase.

The company attributed the growth to stronger gross margins and tax reversals.

Its fourth-quarter profit rose 36% year-on-year to Rs2.579 billion.

Air Link did not announce a fourth-quarter payout. However, it paid a total FY26 dividend of Rs2 per share.

Trading Activity Increases

AHL Deputy Head of Trading Ali Najib said the market had another mixed session.

He noted that the KSE-100 slipped below the key 170,000 level after seven trading sessions.

Najib said oil prices and US-Iran tensions continued to affect investor sentiment.

He also pointed to supply disruption risks around the Strait of Hormuz.

According to Najib, these risks could affect Pakistan through higher energy import costs.

UBL, Fauji Fertiliser, Pakistan Petroleum, HBL, Mari Energies and Engro Holdings were among the stocks weighing on the index.

PSO, Systems Ltd, Pakistan Services and Bank Alfalah also contributed to the decline.

Najib expects volatility to continue. He said selective buying could return if geopolitical tensions ease.

Market Volume Rises

Trading activity increased during Tuesday’s session.

Total volume reached 568 million shares. Monday’s volume stood at 421 million shares.

The value of traded shares reached Rs20.8 billion.

A total of 496 companies traded in the ready market.

Of these, 154 closed higher, while 305 declined. Another 37 remained unchanged.

Cnergyico led trading volume with 56.5 million shares.

Its share price fell Rs0.23 to close at Rs13.09.

Foreign investors remained net sellers. They sold shares worth Rs132.8 million, according to the National Clearing Company.