PSX Rebounds Above 170,000 as Oil Prices Ease, KSE-100 Gains 1,647 Points
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange (PSX) staged a dramatic recovery on Friday, with the benchmark KSE-100 Index climbing back above 170,000 as easing international oil prices and hopes of talks between Gulf states and Iran over the Strait of Hormuz improved investor sentiment.
The KSE-100 closed at 170,511.86 points, gaining 1,646.82 points, or 0.98%, according to Arif Habib Limited (AHL).
The recovery was particularly striking because the market had initially moved sharply lower.
The benchmark plunged to an intraday low of around 166,141 points, representing a decline of more than 2,700 points from the previous close, before buyers returned and reversed the losses. It subsequently reached an intraday high of 170,764.79 before settling at 170,511.85.
The index therefore swung through a range of more than 4,600 points during an exceptionally volatile trading session.
Easing Oil Prices Trigger Market Recovery
The session began under pressure as attacks by Yemen’s Houthis on Saudi energy facilities pushed crude oil prices higher, increasing concerns about Pakistan’s inflation, import costs and external account.
Sentiment changed later in the day after reports emerged that the six-member Gulf bloc was considering talks with Iranian officials over the future of the Strait of Hormuz.
The development triggered a decline in crude prices and encouraged investors to return to Pakistani equities, according to Topline Securities.
The relationship between international oil prices and Pakistani equities has become increasingly important during the latest Middle East tensions. As a major energy importer, Pakistan is vulnerable to sustained increases in crude prices because they can raise the import bill, increase inflationary pressure and put additional strain on the external account.
Meezan Bank, FFC and Lucky Cement Lead Gains
The recovery was broad enough to push several major index-heavy companies higher.
Meezan Bank, Fauji Fertiliser, Lucky Cement, Pakistan Petroleum, OGDC and Engro Fertilisers collectively contributed approximately 1,032 points to the KSE-100’s gains, according to Topline Securities.
AHL reported constructive market breadth among KSE-100 constituents, with 69 stocks advancing and 30 declining. Meezan Bank, Fauji Fertiliser and Lucky Cement were among the strongest positive contributors.
Across the ready market, 500 companies were traded. Of these, 248 closed higher, 210 declined and 42 remained unchanged.
Trading Volume Climbs to 687 Million Shares
Investor participation also increased during the volatile session.
Overall trading volume reached approximately 687.47 million shares, compared with 628.67 million shares in the previous session, while traded value increased to around Rs33.70 billion.
Cnergyico Pakistan led the volume chart with 104.27 million shares, followed by Pakistan Refinery with 66.01 million and Media Times with 35.45 million shares.
Foreign investors, however, remained net sellers, disposing of shares worth approximately Rs1.8 billion, according to National Clearing Company data cited in the report.
PSX Still Down for the Week
Despite Friday’s strong rebound, the broader picture remains challenging.
The KSE-100 ended the week 2.75% lower, while it remained down 3.65% month-to-date and 2.04% for calendar year 2026, according to AHL.
A day earlier, the benchmark had plunged 3,078.56 points, or 1.79%, to 168,865.04 as rising crude prices and renewed US-Iran tensions triggered broad-based selling.
That makes Friday’s rebound a significant recovery, but not yet evidence that the recent market weakness has ended.
AHL said the close held around the July lows near 170,000, with the coming week likely to determine whether the market has established a durable bottom or is experiencing only a temporary counter-trend rally.
With geopolitical developments, crude prices and the Strait of Hormuz situation continuing to change rapidly, the PSX is likely to remain highly sensitive to Middle East headlines in the near term.
