Pakistan Stock Exchange Indices Decline on Oil Prices and Geopolitical Tensions

The KSE-100 index dropped over 715 points at the Pakistan Stock Exchange (PSX) on Friday as renewed tensions between the US and Iran, coupled with rising crude oil prices, weighed on investor sentiment.

The decline pushed the index toward its 200-day moving average, a critical support level that has held in recent weeks. Markets are now focused on the State Bank’s upcoming policy meeting, where interest rates are expected to remain steady at 11.5% amid ongoing global uncertainty.

By market close, the KSE-100 ended 718.25 points lower, or 0.42%, at 171,021.20. Arif Habib Limited reported the index also marked a 2.72% weekly decline, trading below the 170,000 mark. Among active stocks, 32 advanced while 67 declined. Standout gainers included Adamjee Insurance (+6.38%), TRG Pakistan (+3.66%), and Meezan Bank (+0.3%), whereas UBL (-1.2%), NBP (-2.18%), and Systems Limited (-1.66%) were major drags.

The Monetary Policy Committee’s meeting next week follows the breakdown of the US-Iran ceasefire, reigniting concerns over energy market volatility, AHL noted.

Key corporate updates expected include PTCL, Engro Fertilisers, Fauji Fertiliser, Honda Atlas Cars, and Maple Leaf Cement. AHL highlighted that the index has retreated 10% from its July peak, testing the 200-day moving average, which is anticipated to provide support. The 190,000 target remains a key upside objective.

Topline Securities observed sustained negative trading throughout the session, driven by a sharp rise in crude prices to $100 per barrel. While the index dipped 1.3% intraday, later weakness in oil prices enabled a partial rebound, resulting in the 0.42% decline to 171,021.

UBL, NBP, Systems Ltd, HBL, and Fauji Fertiliser collectively subtracted 436 points from the index. Trading activity was led by Maple Leaf Cement (Rs1.16 billion), DG Khan Cement (Rs1.15 billion), Lucky Cement (Rs894 million), OGDC (Rs851 million), and UBL (Rs779 million).

The week-on-week decline of 2.7% reflects heightened risk aversion linked to US-Iran tensions and energy concerns, Topline added.

Overall, 579.94 million shares were traded—a 10.5% rise from the previous session’s 525.12 million—with total turnover reaching Rs23.90 billion. Of the 492 companies listed, 186 rose, 270 fell, and 36 were unchanged.

Volume leaders were Cnergyico PK (59.33 million shares, +Rs0.19 to Rs10.29), Trust Brokerage (36.98 million shares, unchanged at Rs2.24), and Kohinoor Spinning (32.63 million shares, +Rs0.51 to Rs6.05). Foreign investors sold shares worth Rs115 million, per the National Clearing Company.

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