PSX ends four-session rally on oil surge

Karachi, October 31st, 2026 - The Pakistan Stock Exchange (PSX) concluded a four-day upward trend, as profit-taking led to a significant decline in the market index on Friday. The index fell by 784.19 points, or 0.47%, to close at 166,409 points. Bearish sentiment was primarily fueled by increases in oil prices, heightened concerns over US-Iran tensions following the US midterm elections, and reports of attacks on tankers in the Strait of Hormuz, which sparked worries about potential supply disruptions.

Notable negative contributors included United Bank, Lucky Cement, Habib Bank, Fatima Fertiliser, and Attock Refinery, collectively dragging the index down by 359 points. Conversely, Engro Fertiliser, Pakistan Oilfield, Meezan Bank, Engro Holdings, and OGDC offered support, adding 177 points to the index. Analyst Ali Najib noted that the PSX experienced a negative session, with the intraday high reaching 167,339 and the low dropping to 166,535, ultimately closing near the day's low after failing to maintain early gains.

The market remained volatile as investors became more cautious in the second half of the week, with Brent crude surging above $116 per barrel due to fresh attacks in the Strait of Hormuz and Houthi strikes on Saudi refineries, raising concerns about energy supply disruptions and the external account. On the macro front, the Finance Division forecasted October inflation to hover between 9.5% and 10.5%, driven by elevated energy prices, while diesel prices reached Rs400.67 per litre and petrol hit Rs377.91 per litre.

Despite mixed market activity, trading volume increased by 1.05% to 825.46 million shares, but turnover declined by 26.69% to Rs23.12 billion.