Key Takeaways
- KSE-100 index closed at 170,425.62 points, down 0.20 per cent.
- Geopolitical uncertainty and elevated oil prices contributed to market volatility.
- Top contributors and drags identified in the session.
The Pakistan Stock Exchange (PSX) opened the week on a bearish note, with the KSE-100 index closing at 170,425.62 points, marking a decline of 339.60 points, or 0.20 per cent. The index traded between an intraday high of 171,126.52 and a low of 170,120.50, reflecting a range-bound session.
Elevated oil prices, driven by geopolitical tensions between the US and Iran, continued to push up energy import costs, adding to inflationary pressures. The Brent crude price rose above $106 per barrel, heightening concerns about inflationary pressures and the domestic external account.
Investor sentiment remained fragile throughout the session, with persistent geopolitical uncertainty keeping market participants on the sidelines. Trading volume dipped 12.78 per cent to 421 million shares, while turnover value fell 8.02 per cent to Rs17.7 billion.
Top contributors to the index included TRG Pakistan Ltd, Fauji Fertiliser, Oil and Gas Development Company, Attock Refinery, and Hub Power, collectively adding approximately 265 points. By contrast, United Bank, Habib Bank, and Lucky Cement were the leading drags, collectively shaving around 235 points from the benchmark.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, commented, 'Investor sentiment remained fragile throughout the session, as persistent geopolitical uncertainty kept market participants on the sidelines, particularly after media reports that US President Trump rejected an Iranian ceasefire proposal regarding the Strait of Hormuz and declined to comment on potential post-midterm military actions.'
Analysts expect the market to remain volatile, with selective buying likely if geopolitical tensions ease and oil prices trend lower. However, elevated energy prices, external sector risks, and the ongoing IMF review will remain key factors shaping market direction.
The market's performance was influenced by the ongoing stalemate in US-Iran talks to end the war, which has added to economic uncertainty. The PSX's performance reflects the broader concerns about the global economic environment and the impact of geopolitical events on local markets.
Investor sentiment remained fragile throughout the session, as persistent geopolitical uncertainty kept market participants on the sidelines, particularly after media reports that US President Trump rejected an Iranian ceasefire proposal regarding the Strait of Hormuz and declined to comment on potential post-midterm military actions.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd
