KARACHI: After an unprecedented overnight rally, the Pakistan Stock Exchange (PSX) failed to sustain the ceasefire euphoria.

Fragile peace was overwhelmed by investor nervousness after Israel ignored the two-week truce and launched air strikes on Lebanon, pushing the benchmark KSE 100 index into the red on Thursday amid renewed selling pressure.

As a result, oil prices jumped, and most stock markets fell as investors weighed the prospects of a shaky Middle East ceasefire and the reopening of the Strait of Hormuz, crucial to restoring oil and gas shipments.

Topline Securities Ltd said the KSE-100 index closed at 165,517.51 points, recording a modest decline of 293.50 points during a highly volatile trading session. The index fluctuated significantly throughout the day, reaching an intraday high of 166,962 points and a low of 161,993 points, reflecting heightened investor uncertainty.

Nervousness grips market amid uncertainty

The downward pressure on the index was driven primarily by index-heavy stocks, with Bank Al-Habib, Mari Energies, Hub Power, Fauji Fertiliser, and MCB Bank emerging as key laggards, collectively eroding 809 points from the benchmark.

Conversely, selective buying interest in United Bank, Lucky Cement, and Fauji Cement Company provided partial support, adding a cumulative 568 points and helping the index recover a portion of its intraday losses.

Market participation weakened as trading volume dipped 28.63pc to 888 million shares and total turnover edged lower by 0.22pc to Rs54.2 billion.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed a lacklustre session. During trading, the benchmark index was highly volatile, underscoring elevated investor sensitivity amid evolving geopolitical signals.

Sentiment remained fluid as the White House confirmed direct US-Iran talks, with JD Vance expected to lead a delegation to Islamabad, even as tensions in the Middle East persist.

Concurrently, local holidays announced across Islamabad and Rawalpindi for April 9–10 underscored the significance of the upcoming diplomatic engagement.

As the market heads towards the final session of the week, another range-bound session is expected, with all eyes on the Islamabad dialogue scheduled over the weekend.

Published in Dawn, April 10th, 2026