KARACHI:
The Pakistan Stock Exchange (PSX) slipped on Thursday, snapping a three-day winning streak, as renewed geopolitical tensions, surging global oil prices, and widespread profit-taking overshadowed positive news in the energy sector.
The benchmark KSE-100 index closed lower by 1,733.57 points, or 1.01%, settling at 170,498.95—reversing gains from the prior session. The downturn came as Brent crude surged past $100 per barrel, stoking concerns over rising inflation, the country’s external account, and broader macroeconomic pressures.
According to Arif Habib Limited (AHL), the decline was broad-based, keeping the KSE-100 within its July low consolidation range. While only 11 stocks advanced, 87 closed in the red. Key positive contributors included Engro Fertilizers, HBL, and Ghandhara Automobiles. Conversely, heavyweights like UBL, Lucky Cement, and Mari Energies dragged the index downward.
Market sentiment was further weighed upon by Geely’s cautious entry strategy into Pakistan through Bestway Automotive, with the Chinese automaker planning to launch three SUV models. Meanwhile, significant upgrade deals—such as those signed by Attock Refinery and Cnergyico with Inter-State Gas Systems—also failed to buoy overall market mood, despite signaling long-term potential under the revised brownfield refinery policy.
Topline Securities noted that the KSE-100 opened strong but gave way during the day, closing at 170,499 after an intraday high of 172,491 and a low of 170,418. The initial momentum was fueled by optimism around U.S.-Iran diplomatic developments and the anticipated IMF mission visit. However, intensified profit-taking in the latter half of trading erased much of those gains.
Adding to headwinds, Brent crude prices edged closer to $107 a barrel amid escalating tensions in the Middle East. This renewed spike reignited fears about import costs, currency pressure, and fiscal strain—all of which dampened investor appetite for local equities.
On the structural front, National Refinery Limited along with Attock Refinery and Cnergyico secured key agreements with Inter-State Gas Systems. These projects form part of a $6 billion initiative aimed at upgrading aging facilities to produce environmentally friendly Euro-V compliant fuels, reducing reliance on imported refined products over time.
Despite this strategic outlook, refinery-related stocks ended in negative territory alongside the wider market, reflecting a risk-off mood among investors.
Trading activity remained moderate, with total volumes touching 759.97 million shares and a traded value of approximately Rs27.54 billion.
In terms of individual performance, 101 out of 495 actively traded companies closed higher, while 358 declined and 36 remained flat. Cnergyico Pakistan emerged as the most heavily traded stock, moving 158 million shares and falling Rs0.84 to close at Rs13.47. It was followed by K-Electric (72 million shares, down Rs0.48 to Rs6.05) and First National Equities (60 million shares, down Re0.07 to Rs1.12).
Foreign investors returned to the market, purchasing securities worth Rs17.7 million, according to data released by the National Clearing Company of Pakistan.
