PSX Stages Late Recovery to Close Marginally Higher Amid Geopolitical Volatility

The Pakistan Stock Exchange (PSX) began the week under pressure as persistent geopolitical tensions triggered extreme volatility. However, a late-session surge in value buying enabled the benchmark KSE-100 index to pare intraday losses and finish marginally in positive territory.

According to Topline Securities Ltd, the index closed 124.95 points, or 0.07 per cent, higher at 175,927.74. Strong buying interest in heavyweight banking and refinery stocks during the final hours erased sharp earlier declines. The session was marked by a wide 2,493-point trading range, with the index touching an intraday high of 176,129 and a low of 173,636 before steadying. Selective blue-chip accumulation provided a floor after intense early selling.

On the sectoral front, banking and refinery shares spearheaded the recovery, supported by selective buying in other index-heavy names. Despite the rebound, sentiment remained fragile as investors monitored geopolitical developments and their implications for global energy markets and foreign capital flows.

Late buying in banks, refineries offsets early losses

Najib Ali, Deputy Head of Trading at Arif Habib Ltd, noted the market opened nearly 2,000 points lower following escalating U.S.-Iran hostilities over the weekend, which heightened Middle East uncertainty and pushed international oil prices up roughly 3 per cent at the open. However, selective blue-chip buying gradually restored confidence, allowing the benchmark to recover into positive territory.

United Bank, Attock Refinery, Cnergyico PK, Engro Holdings, and Hub Power were the session’s top contributors, collectively adding approximately 338 points. Conversely, Habib Bank, Millat Tractor, Engro Fertiliser, Pakistan Services Ltd, and Service Industries dragged the index down by a combined 133 points.

Trading activity remained steady, with volumes rising 8.83 per cent to 675.9 million shares and total turnover edging up 1.28 per cent to Rs30.2 billion.

Analysts expect sentiment to stay highly sensitive to geopolitical shifts. While attractive valuations may continue to spur selective buying, a sustained recovery will likely hinge on a de-escalation of regional tensions.

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