The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index lost 1,332.47 points, or 0.78%, on Thursday to close at 168,636.85, as sustained selling pressure erased early gains.
The index moved between an intraday high of 170,688.38 and a low of 168,567.79. Trading had started on a positive note, with the KSE-100 climbing 300.84 points, or 0.18%, to 170,270.16 by 10:15am before the market came under selling pressure.
Investor sentiment remained cautious amid geopolitical uncertainty and rising international oil prices. Crude prices gained around 2% after China suspended oil product exports, adding to concerns over global fuel supplies. Market participants also continued to monitor diplomatic efforts aimed at ending the US-Iran conflict.
On the domestic front, Pakistan’s inflation rate eased to 10.26% in September from 11.1% in August, mainly due to softer food prices. However, inflation remained above the State Bank of Pakistan’s medium-term target range.
AKD Securities analyst Muhammad Awais Ashraf said easing inflation, a stronger external account position and reduced domestic political uncertainty could help improve investor confidence. He added that progress toward resolving the US-Iran conflict could act as an important market catalyst, while the restoration of normal trade flows from Gulf countries could help ease the impact of the ongoing crisis.
Ashraf recommended investor attention toward the banking, exploration and production (E&P), fertiliser, textile, oil marketing, technology, steel and automobile sectors. He also noted that E&P and oil marketing companies could benefit from progress on resolving gas-sector circular debt.
JS Global analyst Nawaz Ali said investor sentiment remained weak as market participants adopted a wait-and-see approach amid heightened geopolitical tensions and higher crude prices. He added that domestic political uncertainty was also keeping investors cautious.
According to Ali, trading activity could remain subdued until fresh market triggers emerge, although positive developments on the US-Iran front could improve sentiment and offer some relief to equities.
KTrade Securities said the index surrendered its initial gains as selling continued throughout the session. Kohinoor Textile, Services and Attock Refinery were among the stocks providing support, while Pakistan Petroleum, Hub Power, Oil and Gas Development Company and Fauji Fertiliser came under pressure.
Arif Habib Limited reported that 14 stocks gained while 86 declined. Kohinoor Textile rose 1.02%, Services 0.26% and Attock Refinery 0.21%, making the strongest positive contributions. On the other hand, Pakistan Petroleum fell 2.45%, United Bank declined 0.81% and Hub Power dropped 1.22%.
Official data showed headline inflation reached 10.3% year-on-year in September, up from 5.8% a year earlier. On a month-on-month basis, prices increased 1.3% during the month, pushing average inflation for the first quarter of FY27 to 10.21%, compared with 4.30% during the same period last year.
Meanwhile, Pakistan was in discussions with Iranian authorities over securing safe passage for two October shipments of Qatari liquefied natural gas through the Strait of Hormuz.
Arif Habib Limited maintained a cautious outlook for the market, noting that the index could face further downside, with the 166,000 level emerging as a potential point of focus.
Total trading volume stood at 548.4 million shares, down from 591.2 million shares in the previous session. Of the 492 companies traded in the ready market, 121 advanced, 323 declined and 48 closed unchanged.
Kohinoor Spinning remained the volume leader, with 93.8 million shares changing hands. Its stock gained Rs0.11 to close at Rs5.84.
