KARACHI: Stocks declined for the third straight day on Thursday, with the KSE-100 index experiencing significant volatility amid ongoing tensions in the Middle East, which heig­htened economic uncertainty.

Nevertheless, late buying trimmed earlier losses, allowing the index to close above the 180,000 mark.

Topline Securities Ltd said the index remained under pressure, extending its losing streak as persistent selling, driven by geopolitical concerns and cautious investor sentiment, weighed on the market. The index traded in a volatile range, recovering partially from its intraday lows but still closing in negative territory.

The market opened on a weak note and saw aggressive selling throughout the session, with the index falling to an intraday low of 179,411.35 points before trimming losses. At the close, the index settled at 181,259.67 points, down 369.69 points or 0.20 per cent from the previous close.

Investor sentiment remained fragile as regional geopolitical tensions, elevated international oil prices, and uncertainty over global markets prompted profit-taking and defensive positioning. Buying interest was seen in selected value stocks, helping the market recover from its day’s lowest level, though this was insufficient to reverse the overall bearish trend.

Heavyweight stocks, including Meezan Bank, MCB Bank, Pakistan Petroleum, Engro Holdings, and Askari Bank, were the main drags, collectively shaving approximately 521 points off the benchmark.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said trading was relatively calm compared with the sharp overnight sell-off triggered by escalating geopolitical tensions.

On the macroeconomic front, remittances from overseas Pakistanis rose 2pc year-on-year to $3.5bn in June, compared with $3.4bn in June 2025, although they fell 18pc month-on-month. For FY26, remittances reached a reco­rd $41.6bn, up 9pc year-on-year.

Investor participation remained subdued, with traded volume dipping 36.67pc to 982.6 million shares and total turnover falling 32.95pc to Rs41.7 billion. Cnergyico PK topped the volume chart with 211.6 million shares.

Analysts expect the market trend to continue being heavily influenced by geopolitical developments. A reduction in tensions could boost investor confidence, whereas increased escalation might sustain higher volatility in the short term.

Published in Dawn, July 10th, 2026