PSX extends losses on economic uncertainty

Pakistani stock market, the Pakistan Stock Exchange (PSX), continued its downward trend for the third day in a row on Wednesday, amid escalating tensions in the Strait of Hormuz and rising oil prices. The unrest in the Middle East drove oil prices higher, exacerbating inflationary pressures and economic uncertainty. The rising costs of production, coupled with the prospect of interest rate hikes to control inflation, could further weaken industrial and trading sectors and dampen expectations of economic recovery.

Pakistan's trade deficit widened in the first two months of the current fiscal year due to increased import costs and subdued export performance, straining foreign exchange reserves amid existing external debt obligations.

The KSE-100 index, which serves as the benchmark for the Pakistan Stock Exchange, dropped 698.56 points, or 0.40%, to close at 171,943.60. This decline came after trading between a high of 173,174 and a low of 171,802 throughout the session. The market remained volatile and bearish, with investors exercising caution due to the heightened geopolitical tensions in the Middle East and the surge in crude oil prices.

Brent crude futures hit $100 a barrel for the first time since late July, following Iran's and the US's attacks on tankers, which threatened further disruptions to energy supplies from the region.

Major contributors to the index's decline included Fauji Fertiliser, MCB Bank, Lucky Cement, Meezan Bank, and Mari Energies, collectively dragging the KSE-100 down by approximately 409 points. However, Pakistan Services Ltd, United Bank, and Oil and Gas Development Company provided some support, adding roughly 224 points to the index.

Analyst Ali Najib from Arif Habib Ltd noted that market sentiment remained subdued due to geopolitical uncertainty. On the macro front, remittances increased by 17% year-on-year to $3.7 billion in August and rose by 15% year-on-year to $7.3 billion in 2MFY27.

Investor participation weakened sharply, with trading volume plunging 33.89% to 477.6 million shares and the total traded value dipping 18.98% to Rs22.6 billion. Cnergyico Pk led the volume chart with 65.8 million shares. The story was published in Dawn on September 10th, 2026.