PSX Sheds 1,734 Points as Oil Spike, Geopolitical Risks Hit Stocks
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange (PSX) reversed recent gains as the benchmark KSE-100 Index plunged 1,733.57 points, or 1.01%, to close at 170,498.95, with rising crude oil prices, geopolitical uncertainty and profit-taking triggering broad-based selling.
The index had closed the previous session at 172,232.51, after gaining 830.43 points on optimism surrounding US-Iran diplomatic contacts and softer oil prices. Thursday’s trading reversed much of that advance.
The KSE-100 initially moved higher and reached an intraday peak of 172,491.17, but selling intensified later in the session. It subsequently fell to a low of 170,418.38 before closing slightly above that level.
Market analysts attributed the reversal to a combination of profit-taking after three consecutive positive sessions and renewed concerns about the Middle East and international energy prices.
Brent crude moved above $100 per barrel, with KTrade reporting that it approached $107 during the session. Elevated oil prices renewed concerns about Pakistan’s inflation outlook, external account and broader macroeconomic stability.
Broad-Based Selling Hits Major Stocks
Selling pressure was spread across the market.
According to Arif Habib Limited, just 11 KSE-100 constituents advanced while 87 declined. Engro Fertilisers, HBL and Ghandhara Automobiles were among the positive contributors, while UBL, Lucky Cement and Mari Energies exerted some of the largest downward pressure on the benchmark.
Topline Securities said investors moved to lock in profits after three successive sessions of gains, resulting in a broad-based retreat.
Commercial banks, cement, oil and gas exploration, power and refinery stocks were among the sectors contributing to the decline.
The session also unfolded amid uncertainty surrounding Pakistan’s economic outlook, including ongoing discussions with the visiting International Monetary Fund mission. Dawn additionally reported that political uncertainty surrounding PTI’s march call contributed to cautious sentiment.
Nearly 760 Million Shares Traded
Overall PSX trading volume reached 759.97 million shares, compared with 773.59 million shares in the previous session.
The value of shares traded stood at approximately Rs27.54 billion.
Of the 495 companies whose shares traded in the ready market, 101 closed higher, 358 declined and 36 remained unchanged.
Cnergyico Pakistan led the volume chart with approximately 158 million shares, declining Rs0.84 to close at Rs13.47.
K-Electric followed with about 72 million shares, falling Rs0.48 to Rs6.05, while First National Equities recorded roughly 60 million shares and closed Rs0.07 lower at Rs1.12.
Foreign investors recorded net share purchases worth approximately Rs17.7 million, according to National Clearing Company data cited by The Express Tribune.
$6 Billion Refinery Upgrade Fails to Lift Sentiment
The market declined despite a significant positive development for Pakistan’s refining industry.
National Refinery, Attock Refinery and Cnergyico signed plant upgrade agreements with Inter State Gas Systems under the amended brownfield refinery policy.
The agreements form part of an estimated $6 billion refinery modernisation programme aimed at upgrading domestic plants to produce cleaner Euro-V fuels while reducing Pakistan’s dependence on imported petroleum products.
The development was not enough to offset broader selling pressure, and refinery shares also ended lower with the overall market.
Oil Remains Key Risk for Pakistan Stocks
The sharp reversal illustrates the PSX’s current sensitivity to international oil prices and developments in the Middle East.
Pakistan is a major energy importer, meaning prolonged increases in global crude prices can add pressure to the country’s import bill, inflation outlook and foreign-exchange requirements.
Wednesday’s rally had been supported partly by expectations that US-Iran negotiations could reduce geopolitical risks and ease concerns over global oil supplies. The KSE-100 gained 830.43 points to 172,232.51 during that session.
By Thursday, however, the rebound in crude prices and continued uncertainty over the diplomatic outlook had again shifted investors towards caution.
Business Recorder similarly attributed the sell-off to higher crude prices, limited progress in US-Iran diplomacy and concerns surrounding a potential US diesel export ban.
The market therefore ended the session firmly negative despite positive developments in the domestic refinery sector.
