KARACHI: Investor sentiment remained negative as the Pakistan Stock Exchange (PSX) recorded another volatile session amid a lack of catalysts and persistent geopolitical tensions, pushing the benchmark KSE 100 index lower for the third consecutive session on Tuesday.

Ali Najib, PSX, witnessed another volatile session, with the KSE-100 Index closing at 168,916, down 1,590 points, or 0.93 per cent.

“Investor sentiment remained fragile amid persistent geopolitical tensions, as aggressive rhetoric from US and Iranian officials heightened fears of further escalation,” he noted.

The benchmark slipped below the 170,000 level amid the lack of any breakthrough in US-Iran peace negotiations, while Donald Trump remarked that the ceasefire was on “massive life support” after rejecting Tehran’s latest peace proposal.

Rising oil prices and fragile sentiment trigger profit-taking

On the macroeconomic front, Pakistan’s services exports grew 17.05pc, primarily supported by strong performance from the IT sector, to $7.34bn in July-March FY26 from $6.27bn in the same period last year. On a monthly basis, exports grew by 18.27pc in July, 8.41pc in August, 14.85pc in September, 17.61pc in October, 22.26pc in November, 15.94pc in December, 31.12pc in January, 16.89pc in February, and 16.17pc in March, reflecting sustained momentum throughout the period.

United Bank, Lucky Cement, Engro Holdings, Habib Bank, Hub Power, Systems Ltd, Maple Leaf Cement Factory Ltd, National Bank of Pakistan, and MCB Bank led the decline, collectively erasing 723 points from the benchmark.

Topline Securities Ltd said the PSX experienced a rollercoaster session as investors navigated heightened geopolitical uncertainty. Adding to the nervousness, international oil prices continued to rise, triggering widespread profit-taking across key sectors and leading to a highly volatile trading session.

Investor participation weakened slightly as the trading volume fell 7.78pc to 1.017 billion shares. However, the traded value increased 3.17pc to Rs32bn. Cnergyico PK Ltd dominated the volume chart, with traded volume of 154 million shares.

Developments in US-Iran relations will continue to be a major influence on market trends. While no official talks have been scheduled, ongoing diplomatic efforts and behind-the-scenes communication indicate that negotiations are likely to proceed soon, maintaining investor attention on geopolitical developments.

Published in Dawn, May 13th, 2026