Renewed US-Iran tensions, elevated oil prices and refinery concerns weigh on investor confidence
The Pakistan Stock Exchange (PSX) remained under pressure as bearish sentiment prevailed amid renewed geopolitical tensions and elevated international oil prices. The benchmark KSE-100 Index closed at 173,636 points, falling 1,693 points, or 0.97%, as investors remained cautious over rising macroeconomic risks.
The index traded between an intraday high of 175,353 and a low of 173,603, highlighting persistent selling pressure throughout the session.
Market sentiment was affected by renewed tensions between the United States and Iran, while higher global oil prices added to concerns about inflationary pressures and Pakistan’s external account. Investors also remained wary of the potential impact of higher energy costs on overall macroeconomic stability.
The refinery sector faced notable selling pressure following reports that the federal government has decided to impose financial penalties on oil refineries that fail to execute Upgradation Agreements (UAs) with the Ministry of Energy’s Petroleum Division by October 1, 2026.
The reported decision raised concerns among investors about the potential financial implications for refinery companies and added further pressure to the broader market.
Among individual stocks, UBL, OGDC, PPL, MCB and FFC were the major contributors to the KSE-100’s decline. Collectively, the five stocks dragged the benchmark index down by approximately 811 points.
However, some companies offered support and helped limit the overall decline. PSEL, AKBL and AICL collectively contributed around 117 points to the index.
Despite the bearish close, market participation remained active. Total traded volume reached approximately 679 million shares, while the total traded value stood at around PKR 23.6 billion.
The latest market performance reflects heightened investor sensitivity to both domestic policy developments and external economic risks. With geopolitical tensions continuing to influence global energy markets, investors are likely to closely monitor oil prices, inflation expectations and developments surrounding Pakistan’s external account.
The refinery sector’s response to the government’s reported Upgradation Agreement deadline will also remain an important factor for market sentiment in the near term.