Key Takeaways
- The Pakistan Stock Exchange (PSX) recorded a fourth consecutive week of losses.
- Investor sentiment was hit by domestic political uncertainty and geopolitical tensions.
- The KSE-100 index fell 0.4% to close at 166,419 points.
The Pakistan Stock Exchange (PSX) has continued its downward trajectory, recording a fourth consecutive week of losses, according to Arif Habib Ltd (AHL).
The benchmark KSE-100 index fell by 0.4% week-on-week, shedding 670 points to close at 166,419 points.
Domestic political uncertainty and geopolitical tensions, particularly US-Iran tensions, have significantly impacted investor sentiment, alongside concerns over inflation and the prospect of an interest rate hike by the State Bank of Pakistan (SBP).
In the outgoing week, the index experienced its steepest sell-off on Monday, losing 1,965 points following the imposition of emergency and governor’s rule in PTI-ruled Khyber Pakhtunkhwa.
Geopolitical tensions, rising oil prices, and monetary tightening concerns have collectively weighed on investor sentiment. Brent crude prices rose to $107 per barrel amid disruptions to energy supplies through the Strait of Hormuz and renewed attacks on Saudi energy infrastructure.
Sector-wise, exploration and production companies led the decline, contributing 330 points to the overall fall, followed by banks (319 points), cement (136 points), investment banks (109 points), and power companies (76 points).
Among individual stocks, Oil and Gas Development Company contributed the most to the decline, shedding 161 points, followed by United Bank (136 points), Habib Bank, and Pakistan Telecommunication Company (111 points each), and Pakistan Oilfields (95 points).
Fertiliser stocks provided the biggest support, adding 171 points, followed by oil marketing companies (63 points), refineries (60 points), pharmaceuticals (41 points), and fast-moving consumer goods companies (22 points).
Fauji Fertiliser Company was the top individual contributor, adding 85 points, followed by Systems Ltd (81 points), Pakistan State Oil (62 points), Engro Fertilisers (60 points), and Attock Refinery Ltd (44 points).
