PSX Falls Over 1,700 Points as Oil Prices and Geopolitical Tensions Weigh on Market
PSX falls sharply as rising oil prices and geopolitical tensions pressure the KSE-100 index.
The Pakistan Stock Exchange (PSX) fell sharply on Thursday as investors reacted to renewed geopolitical tensions and higher global oil prices.
The benchmark KSE-100 index dropped 1,733.57 points, or 1.01%, to close at 170,498.95. The decline reversed the previous session’s gains.
Brent crude moved above $100 per barrel during the session. The rise raised concerns over inflation, Pakistan’s external account and broader economic stability.
Profit-Taking Puts Pressure on KSE-100
Arif Habib Limited (AHL) reported a broad-based decline across the market.
Only 11 stocks gained, while 87 stocks fell. Engro Fertilisers, HBL and Ghandhara Automobiles provided the main positive contributions.
UBL, Lucky Cement and Mari Energies recorded the largest negative impact on the index.
AHL said the KSE-100 remained within its July low consolidation zone. The report also highlighted the September 11 low near 166,100 as a key market level.
Topline Securities reported that the index traded between an intra-day high of 172,491 and a low of 170,418.
The market initially moved higher. However, investors increased profit-taking during the second half of the session.
OICCI Urges Pakistan to Turn Economic Stability Into Investment and Export Growth
After three consecutive sessions of gains, investors moved to lock in profits. This triggered a broad-based retreat.
Oil Prices Add to Market Concerns
Market sentiment also remained cautious amid renewed tensions in the Middle East.
Brent crude moved above the $100-per-barrel level. KTrade said prices later moved towards $107 a barrel as geopolitical tensions intensified.
The oil price increase added to concerns about Pakistan’s import bill and macroeconomic stability.
Wednesday’s 830-point advance had followed optimism over US-Iran talks and the arrival of an International Monetary Fund (IMF) mission.
Thursday’s decline erased a significant portion of those gains.
Refinery Upgrades Offer a Structural Positive
The market also received positive news from the refinery sector.
National Refinery, Attock Refinery and Cnergyico signed upgrade agreements with Inter State Gas Systems under the amended brownfield refinery policy.
The agreements form part of an estimated $6 billion refinery modernisation drive. The programme aims to support Euro-V fuel production and reduce Pakistan’s dependence on imported petroleum products.
Despite the development, refinery stocks closed lower as the broader market came under pressure.
AHL also highlighted separate plant upgrade agreements involving Attock Refinery and Cnergyico.
Meanwhile, Geely is planning to enter Pakistan with three SUV models through Bestway Automotive, according to the market report.
Trading Activity Remains Strong
Trading volumes reached 759.97 million shares, compared with 773.59 million in the previous session.
The total value of traded shares stood at Rs27.54 billion.
Shares of 495 companies changed hands in the ready market. Of these, 101 stocks closed higher, while 358 declined. Another 36 remained unchanged.
Cnergyico Pakistan led trading volume with 158 million shares. Its stock fell Rs0.84 to close at Rs13.47.
K-Electric followed with 72 million shares. Its shares declined Rs0.48 to Rs6.05.
First National Equities ranked third with 60 million shares traded. The stock fell Rs0.07 to close at Rs1.12.
According to the National Clearing Company, foreign investors bought shares worth Rs17.7 million during the session.
