Benchmark index closes 509 points lower as US-Iran tensions and higher global oil prices weigh on sentiment
KARACHI: The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) fell more than 500 points on Tuesday, as rising geopolitical tensions and elevated international oil prices weighed on investor sentiment.
The KSE-100 Index closed at 176,467 points, down 509 points from the previous session’s close of 176,976 points. The benchmark declined by around 0.29% during the session.
According to analysts at Topline Securities Limited, trading remained highly volatile as investors assessed growing uncertainty surrounding the ongoing US-Iran conflict and its potential impact on international oil prices.
The benchmark initially gained momentum, rising as much as 824 points during intraday trading. However, the market subsequently reversed sharply, falling to an intraday low of around 600 points, highlighting heightened risk aversion and cautious investor behaviour.
The index ultimately settled at around 176,466 points, down 508 points or 0.29%, according to Topline Securities.
Refinery stocks remain in focus
Despite the broader market decline, the refinery sector remained one of the strongest areas of investor interest.
Trading volumes surged across refinery stocks amid market speculation that five refineries could sign long-awaited upgradation agreements this week.
The expected agreements have generated renewed buying interest in the sector, making refinery stocks one of the most closely watched themes at the PSX.
Investors are increasingly monitoring developments surrounding refinery upgrades, which could have significant implications for the sector’s future investment and operational outlook.
Key stocks influence market movement
Several heavyweight stocks helped limit the overall decline in the benchmark.
SYS, ENGROH, EFERT, OGDC and AGP were among the leading positive contributors, collectively adding approximately 359 points to the KSE-100 Index.
On the other hand, MEBL, MCB, BAFL and LUCK emerged as the major laggards, collectively dragging approximately 294 points from the index.
The contrasting performance of major index constituents reflected a cautious and highly selective trading environment.
Geopolitical risks remain key concern
Market sentiment remained dominated by geopolitical developments, particularly concerns surrounding the US-Iran conflict and the potential consequences for global energy markets.
Higher international oil prices could increase pressure on Pakistan’s import bill and inflation outlook, while renewed geopolitical uncertainty may encourage investors to adopt a more defensive approach.
The sharp intraday swings in the KSE-100 highlighted the sensitivity of local equities to developments in global markets and energy prices.
Market participants are expected to closely monitor international oil prices, geopolitical developments and refinery-upgrade agreements for further direction in the coming sessions.