The Pakistan Stock Exchange (PSX) extended losses for the second straight session on Tuesday as the benchmark KSE-100 index dipped 1,464 points, or 0.81%, amid rising oil prices and fading hopes of a US-Iran deal on reopening the Strait of Hormuz.
Market Performance
Selling pressure dragged the index below the 180,000 mark as investors turned cautious over growing uncertainty about oil supplies and regional tensions. The KSE-100 climbed to an intra-day high of 181,017.29 before extensive selling pulled it down to a low of 179,778.99. The index closed at 179,846.68.
Analyst Commentary
JS Global analyst Muhammad Hasan Ather noted: “Bearish momentum dominated trading floors, primarily driven by fading hopes of a US-Iran diplomatic resolution of the conflict, which triggered a spike in crude oil prices and heightened global market uncertainty.”
Ather added that institutional profit-taking at higher levels further weighed on investor sentiment. He expected sideways consolidation in the short term but noted that resilient corporate earnings, monetary policy easing and long-term macroeconomic stabilisation signal strong underlying upside potential.
KASB KTrade’s Ahmed Sheraz said the session remained broadly negative, with Fauji Fertiliser, Engro Holdings, Lucky Cement, United Bank, Bank AL Habib, Oil & Gas Development Company and Hub Power being the major index drags.
Sector Impact
Sector-wise, cement, fertiliser, investment banks and oil & gas came under selling pressure, reflecting a cautious approach driven by rising energy costs, which revived concerns over margins, inflation and the broader economic impact.
Oil Price Movement
Oil prices climbed amid renewed uncertainty surrounding the US-Iran situation and the Strait of Hormuz. Brent moved close to $90 per barrel amid fading hopes of a near-term agreement. Asian equities also faced pressure as investors assessed the implications of higher energy prices.
Corporate Results
On the corporate front, Fauji Cement reported net FY26 earnings of Rs16.2 billion (EPS: Rs6.6), up 21% year-on-year, in line with estimates. The company announced a final cash dividend of Rs1.5 per share.
Trading Volumes
Overall trading volumes decreased to 860.3 million shares compared with Monday’s total of 917.3 million. The value of traded shares stood at Rs38.9 billion. Shares of 493 companies were traded, with 148 stocks closing higher, 311 falling and 34 remaining unchanged.
Cnergyico Pk was the volume leader with trading in 134 million shares, losing Rs0.29 to close at Rs12.84. Foreign investors bought shares worth Rs82.9 million, according to the National Clearing Company.
What’s Next
Analysts expect the KSE-100 to remain volatile but broadly range-bound, with geopolitical developments likely dictating the next major move. Investors will continue monitoring the US-Iran situation, oil prices and corporate earnings for market direction.
Conclusion
The market’s decline reflects broader concerns about regional tensions and their impact on energy costs. While corporate earnings and macroeconomic indicators remain positive, geopolitical uncertainty continues to weigh on investor sentiment.
