Pakistan’s stock market came under pressure as US-Iran tensions and elevated oil prices fuelled concerns over inflation, the external account and the country’s import bill.
The Pakistan Stock Exchange (PSX) witnessed renewed selling pressure on Tuesday as investors opted to book profits following recent gains, with heightened geopolitical tensions and rising international oil prices weighing on market sentiment.
The benchmark KSE-100 Index came under significant pressure during the session, falling as much as 2,145 points intraday. The index recovered some of its losses later in the day but still closed at 172,642 points, down 993 points, or 0.57%.
Investor concerns centred on the potential economic fallout from the ongoing US-Iran conflict, particularly the impact of higher global oil prices on Pakistan’s inflation outlook, external account position and import bill. As an oil-importing economy, a sustained rise in international crude prices could increase pressure on the country’s foreign exchange requirements and macroeconomic stability.
Selling was concentrated in several index-heavy sectors, with major blue-chip stocks coming under pressure. UBL, LUCK, MEBL, NBP and PPL were among the biggest negative contributors, collectively dragging the KSE-100 Index lower by approximately 485 points.
However, some stocks provided a cushion against a deeper decline. PSEL, MCB and ATRL emerged among the key positive contributors, collectively adding around 199 points to the index.
Despite the broader weakness, market participation remained relatively active. Total traded volume reached 722 million shares, while the overall traded value stood at approximately PKR 27.9 billion, indicating continued investor engagement amid the heightened volatility.
CNERGY remained the volume leader, with around 103 million shares changing hands during the session.
Market sentiment is likely to remain sensitive to developments on the geopolitical front, particularly movements in international oil prices. Investors may also continue to monitor domestic economic indicators and corporate earnings for direction as concerns over external-sector pressures compete with improving company fundamentals.