Stocks drift lower on geopolitical tensions
KARACHI: The Pakistan Stock Exchange (PSX) opened the week on a bearish note as elevated oil prices, amid a stalemate in US-Iran talks to end the war, continued to push up energy import costs, adding to inflationary pressures and fuelling uncertainty about the economic outlook. Topline Securities Ltd said the KSE-100 index traded range-bound, closing at 170,425.62 points, down 339.60 points, or…
The Pakistan Stock Exchange (PSX) commenced the week on a downtrend as oil prices surged, fueled by the breakdown in US-Iranian negotiations aimed at concluding the conflict. This escalation in energy import expenses, amplifying inflationary pressures, instilled a sense of uncertainty regarding the economic perspective. The KSE-100 index oscillated within a narrow range, concluding at 170,425.62 points, a decline of 339.60 points, representing 0.20 percent.
The index fluctuated between a peak of 171,126.52 and a trough of 170,120.50. Throughout the trading day, a risk-averse atmosphere prevailed, as investors exercised caution due to mounting geopolitical instability and burgeoning global oil costs. Brent crude breached the $106 per barrel threshold, intensifying apprehensions about inflationary pressures and the nation's balance of trade.
Major players contributing to the index were TRG Pakistan Ltd, Fauji Fertiliser, Oil and Gas Development Company, Attock Refinery, and Hub Power, who added roughly 265 points to the benchmark. In contrast, United Bank, Habib Bank, and Lucky Cement were the chief factors diminishing the index's value, collectively withdrawing about 235 points.
Analyst Ali Najib of Arif Habib Ltd noted that investor confidence remained tenuous throughout the session, as continuous geopolitical instability kept market participants on the sidelines, particularly following news that US President Trump had disapproved an Iranian cease-fire proposal concerning the Strait of Hormuz and refrained from commenting on prospective post-election military actions.
Trading activity faltered, with volume decreasing by 12.78 percent to 421 million shares and turnover value falling by 8.02 percent to Rs17.7 billion. Cnergyico PK led the volume chart with 61.5 million shares traded. Analysts anticipate the market to remain erratic, with selective purchases probable if geopolitical tensions subside and oil prices decrease.
Nonetheless, high energy prices, external sector risks, and the continuous IMF assessment will persist as pivotal elements dictating market progress.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
