Equities extend losses amid low volume

KARACHI - The stock market experienced further declines on Friday as geopolitical and economic uncertainties weighed heavily on investors, resulting in the benchmark KSE-100 index falling below 168,000 points intraday before closing at 168,155 points. The index traded primarily in negative territory throughout the session, experiencing a 0.29% drop.

Investor engagement remained limited due to a lack of new catalysts, soaring crude oil prices, and persistent tensions between the United States and Iran. Only 492 million shares changed hands, valued at Rs17.45 billion. The index's leading contributors to its decline were Systems Ltd, Meezan Bank, Lucky Cement, National Bank, and Habib Bank, collectively responsible for a 269-point decrease.

Trading expert Ali Najib at Arif Habib Ltd expressed reluctance to participate in the market's current volatility due to the ongoing geopolitical risks. Despite international oil prices dropping by over 2% following France's proposal to release diesel and crude oil reserves, this did not entice bullish sentiment back to the PSX, ultimately leading to a negative closing.

The Sensitive Price Index for the week ending October 1st rose by 11.53% year-on-year and 0.21% week-on-week. Pakistan's trade deficit expanded to $3.6 billion in September, with exports increasing by 17.6% year-on-year to $2.9 billion, while imports grew by 11% to $6.5 billion. Analysts anticipate that market sentiment will remain unpredictable, with potential selective buying if geopolitical tensions ease and oil prices drop further.

However, high energy prices, external-sector risks, and the ongoing IMF review will continue to influence market movements.