PSX tumbles over 1,700 points as oil prices, geopolitical tensions trigger sell-off

PSX tumbles over 1,700 points as oil prices, geopolitical tensions trigger sell-off

The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Thursday as renewed geopolitical tensions, rising global oil prices and profit-taking erased the market’s recent gains.

The benchmark KSE-100 Index fell 1,733.57 points, or 1.01%, to settle at 170,498.95, reversing Wednesday’s strong advance. The market remained under pressure as Brent crude prices moved above $100 per barrel, raising concerns over inflation, the external account and overall macroeconomic stability.

According to Arif Habib Limited (AHL), the decline remained broad-based, with the KSE-100 continuing to trade within its July low consolidation zone. Only 11 index constituents advanced, while 87 closed lower. Engro Fertilisers, Habib Bank Limited (HBL) and Ghandhara Automobiles provided some support, while United Bank Limited (UBL), Lucky Cement and Mari Energies weighed heavily on the index.

AHL also highlighted several developments in the automobile and refinery sectors. Geely plans to enter the Pakistani market with three SUV models through Bestway Automotive, while Attock Refinery and Cnergyico separately signed agreements with Inter State Gas Systems for refinery upgrades under the amended brownfield refinery policy.

Topline Securities said the KSE-100 initially climbed to an intraday high of 172,491 before reversing sharply to an intraday low of 170,418. Profit-taking intensified during the second half of the session after three consecutive sessions of gains.

Market sentiment also remained cautious amid heightened tensions in the Middle East and renewed concerns over crude prices. Brent crude moved above the $100 mark, with KTrade noting that prices approached $107 per barrel.

The latest decline wiped out Wednesday’s 830-point gain, which had followed optimism over US-Iran talks and the arrival of an International Monetary Fund (IMF) mission.

Trading activity remained moderate, with 759.97 million shares changing hands compared with 773.59 million in the previous session. The total traded value stood at Rs27.54 billion.

Of the 495 companies traded in the ready market, 101 closed higher, 358 declined and 36 remained unchanged.

Cnergyico Pakistan led trading volumes with 158 million shares, falling Rs0.84 to close at Rs13.47. K-Electric followed with 72 million shares, losing Rs0.48 to close at Rs6.05, while First National Equities recorded 60 million shares and fell Rs0.07 to Rs1.12.

Foreign investors remained net buyers, purchasing shares worth Rs17.7 million, according to the National Clearing Company of Pakistan.