PSX KSE-100 Ends Flat After Early Rally Fades Amid Mixed Sector Performance and Global Market Jitters

KSE-100 hovers near 176,621, up marginally after early 800-point surge fades; refinery stocks rally on upgrade deal news, SPI inflation rises 0.49% WoW

The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Friday, with the benchmark KSE-100 Index ending largely flat after giving up significant intraday gains.

At the open, the index surged over 800 points to reach 177,528.00 within the first minutes of trading, reflecting strong buying interest. However, that early momentum quickly reversed, with the index slipping into negative territory and losing more than 400 points by mid-morning around 11:10 am. By noon, the KSE-100 had stabilized at 176,621.25, marking only a modest gain of 29.49 points, or 0.02%, compared to the previous close.

Sectoral performance was mixed during the session. Selling pressure was evident across several key areas, including commercial banks, engineering, and select other stocks. In contrast, refinery shares advanced, buoyed by news that the government plans to sign agreements with refineries within the next seven to ten days to expedite their long-awaited upgrades, as announced by Petroleum Minister Ali Pervaiz Malik.

Adding to the economic context, the Sensitive Price Index (SPI) for the week ending August 20, 2026, rose 0.49% week-on-week, with prices showing a 9.66% increase compared to the same period last year.

The domestic market’s fluctuation mirrored broader global trends. On Thursday, renewed geopolitical tensions and sustained high oil prices prompted investor caution, leading to declines in major stocks that outweighed selective buying activity. The KSE-100 closed down 254.59 points, or 0.14%, at 176,591.77.

Internationally, markets faced continued uncertainty. Equity indexes were heading for their steepest weekly decline since mid-July, driven by ongoing stress in global bond markets and diplomatic stalemate in the Gulf that pushed oil prices to a monthly high, keeping inflation concerns elevated.

In Asia, Japan’s Nikkei slipped 0.3%, extending its weekly decline to nearly 4% and setting up for its worst week since mid-July. Meanwhile, South Korean and Taiwanese markets edged up slightly for the day but remained in the red for the week.

European markets opened with modest gains, though the STOXX 600 was still on track for its sharpest weekly drop since early July, down approximately 1%. Similarly, MSCI’s global equity index pointed toward its largest weekly fall since mid-July.

Across the Atlantic, Wall Street found some support from a robust earnings season, with S&P 500 futures rising 0.25% and Nasdaq futures climbing 0.5%.

Crude oil prices dipped slightly on Friday but remained poised for a second consecutive weekly gain. This followed U.S. threats to enforce what it described as the harshest sanctions yet, with no resolution apparent for ongoing disruptions to oil flows in the Middle East.

Brent crude futures declined 17 cents, or 0.18%, to $93.61 per barrel by 0802 GMT, while U.S. West Texas Intermediate crude slipped 36 cents, or 0.41%, to $86.47. Both benchmarks had touched their highest levels since July 24 in the prior session, with Brent up over 5.8% and WTI gaining 4.8% this week.

U.S. Treasury Secretary Scott Bessent reiterated the administration’s readiness to impose severe economic penalties, suggesting such actions could reduce the need for direct military intervention.

Oil prices have rallied amid supply disruptions from key producers including Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait. Additionally, the recent expiration of a U.S.-Iran peace agreement—without renewed talks—has further complicated the outlook for energy markets.

Source link