Banking and refinery stocks erase intraday losses as investors remain cautious over Middle East tensions
KARACHI: The KSE-100 index ended marginally higher on Monday, recovering from sharp intraday losses as late buying in banking and refinery stocks helped the Pakistan Stock Exchange (PSX) finish in positive territory despite persistent geopolitical concerns.
The benchmark KSE-100 index gained 125 points, or 0.07%, to close at 175,927.73 points, as value buying in heavyweight blue-chip shares offset earlier selling pressure triggered by uncertainty over developments in the Middle East.
Volatile session amid geopolitical uncertainty
Trading remained highly volatile throughout the session as investors weighed the potential economic impact of continued tensions in the Middle East and uncertainty in global energy markets.
The benchmark traded within a 2,493-point range, reaching an intraday high of 176,129 points, up 327 points, before falling to an intraday low of 173,636 points, down 2,166 points. Strong buying during the final hours of trading enabled the market to recover and close slightly higher.
Analysts said investors took advantage of lower valuations in fundamentally strong companies after the market’s sharp early decline.
Banking and refinery stocks drive recovery
The recovery was led by banking and refinery stocks, while selective buying in other blue-chip companies also supported the benchmark.
Among the largest positive contributors were United Bank Limited (UBL), Attock Refinery Limited (ATRL), Cnergyico (CNERGY), Engro Holdings (ENGROH) and Hub Power Company (HUBC). Collectively, these stocks added approximately 338 points to the KSE-100 index.
Despite the positive close, investor sentiment remained cautious as market participants continued to monitor regional geopolitical developments and their potential impact on oil prices, inflation and foreign investment flows into Pakistan.
Trading activity remains healthy
Market participation remained robust during the trading session.
A total of 676 million shares changed hands, while the total traded value reached approximately Rs30.3 billion, reflecting sustained investor interest despite elevated market volatility.
Outlook
Analysts expect the KSE-100 index to remain sensitive to geopolitical developments, movements in international crude oil prices and upcoming macroeconomic indicators.
Any easing in regional tensions could support further recovery, while prolonged uncertainty surrounding the Middle East may continue to drive volatility and influence investor sentiment in the sessions ahead.