KARACHI: Ahead of the long weekend for Labour Day, the Pakistan Stock Exchange (PSX) ended its fourth consecutive session on a jittery note, with the benchmark index recording a sharp intraday decline of 5,433 points to 160,391.19 on Thursday. The fall reflected investor nervousness over geopolitical tensions and surging oil prices, clouding the economic outlook.

According to Topline Securities Ltd, the bearish trend persisted as the KSE-100 index shed 2,829.70 points, or 1.71 per cent, to close at 162,994.17. The decline was attributed to the ongoing standoff between the United States and Iran, with Washington maintaining a naval blockade of Iranian ports to push for a deal on Tehran’s nuclear programme. The resulting deadlock over the Strait of Hormuz has driven up crude oil prices.

Major negative contributions to the index came from United Bank Ltd, Pakistan Petroleum Ltd, Fauji Fertiliser, National Bank of Pakistan, Engro Holdings and Lucky Cement, which collectively dragged the index down by 1,293 points.

Lucky Cement announced its third-quarter FY26 earnings per share at Rs13.02, up 6pc year-on-year but down 16pc quarter-on-quarter. The result fell short of industry expectations due to lower-than-anticipated gross margins and reduced share of associate profits.

Index tumbles 2,830 points as Hormuz fears rattle sentiment

Investor participation weakened markedly, with trading volume falling 22.99pc to 837 million shares, while traded value declined 8.09pc to Rs36.34bn. WorldCall Telecom led the volume chart, with more than 75.3 million shares traded.

Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX extended its losing streak as trading commenced on a weak footing amid escalating geopolitical tensions. Heightened rhetoric between US and Iranian officials pushed international oil prices higher, weighing on global equities, including the PSX.

During the session, the index plunged as much as 3.28pc, though late-session value hunting helped trim losses.

Going forward, elevated oil prices and persistent geopolitical uncertainty are likely to keep market sentiment cautious in the near term. The 160,000 level is expected to serve as strong support, while 175,000 remains attainable if the geopolitical environment improves. Any dip may present a buying opportunity, supported by attractive valuations and resilient medium-term fundamentals.

Published in Dawn, May 1st, 2026