KARACHI: As the country heads for a long break on account of Eidul Fitr and Pakistan Day, equity investors on Thursday preferred to take profits following an overnight recovery rally, amid persistent geopolitical concerns and an uncertain economic outlook.

The benchmark KSE-100 index settled at 152,740, down 1,552 points or 1.01 per cent, after a volatile session that saw it swing between an intraday high of 153,323 and a low of 150,728.

Ali Najib, deputy head of trading at Arif Habib Ltd, said investors adopted a cautious stance before the long weekend, leading to selling pressure and position trimming.

He noted that sentiment was dampened by rising international oil prices and heightened geopolitical risks, while uncertainty over potential new conditions from the International Monetary Fund (IMF), particularly on tax enforcement, remained a key concern for economic policy direction.

Index drops 1.01pc amid geopolitical concerns

Market participants also reacted to escalating tensions in the Middle East, where recent strikes on energy infrastructure contributed to a surge in crude oil prices, further weighing on investor sentiment.

Topline Securities Ltd said the index remained under pressure throughout the session, reflecting investor pessimism driven by geopolitical developments and their impact on global energy markets.

On the corporate front, Mari Petroleum Company Ltd announced a hydrocarbon discovery at the Shams-1 well in Ghotki, with expected production of 48 million cubic feet per day of gas and 64 barrels per day of oil. The discovery is projected to add around Rs11.17 per share annually to earnings, offering a positive long-term trigger.

Major laggards included Engro Holdings, United Bank Ltd, Pakistan Petroleum Ltd, Meezan Bank Ltd and Engro Fertiliser, which collectively dragged the index down by over 640 points. Limited support came from Habib Bank Ltd, Fatima Fertiliser, Kohinoor Textile Mills, Fauji Fertiliser Company and Bank Alfalah.

Trading activity remained subdued, with volume recorded at 324.2 million shares and a turnover of Rs19.36 billion. On a weekly basis, the index extended its losing streak to eight consecutive weeks, shedding 1,126 points, or 0.73pc.

Analysts said investors would closely monitor geopolitical developments during the holidays, particularly in the Middle East, as news flow is likely to determine the market’s near-term direction when trading resumes.

Published in Dawn, March 20th, 2026