Pakistan Stock Exchange Closes Marginally Higher Amid Volatile Trading and Geopolitical Shifts

The Pakistan Stock Exchange (PSX) experienced a turbulent Monday session, ultimately closing with slight gains after a late recovery that offset earlier losses. Investors balanced optimism regarding diplomatic advancements in the Middle East against persistent selling pressure in major sectors.

The benchmark KSE-100 index concluded 154.81 points, or 0.09%, higher at 166,564.07, following a day of significant volatility. The market opened cautiously, with early selling driving the index down to 166,169.41 by 9:34 am, reflecting a 0.14% decline.

Selling intensified throughout the day, pushing the index to a low of 165,776.85 at 12:29 pm, a drop of 0.38%. However, a robust rebound later in the session saw the benchmark reach an intra-day high of 166,989.76, closing in positive territory. This turnaround was influenced by a over 4% drop in global oil prices, fueled by renewed hopes for a resolution to the US-Israel-Iran conflict, which alleviated concerns over energy costs and Pakistan’s import expenses.

According to analysis from Arif Habib Limited (AHL), the PSX started the week with mixed performance, as the KSE-100 oscillated between gains and losses. Out of the traded stocks, 41 advanced while 58 declined. Key contributors to the index’s positive movement included Mari Energies (+3.15%), Fauji Fertiliser (+0.92%), and Engro Holdings (+1.57%). In contrast, the largest drags were Attock Refinery (-10%), OGDC (-1.66%), and PSO (-2.33%).

The refinery sector faced downward pressure as the government adjusted pricing mechanisms to absorb higher petrol import costs without burdening consumers. Although the ex-refinery motor spirit (MS) price increased by Rs15.13 to Rs282.26 per litre, this was mitigated by a Rs14.71 reduction in the petroleum levy and a Rs0.42 cut in the inland freight equalisation margin (IFEM), resulting in an unchanged ex-depot price of Rs377.91 per litre.

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