KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday extended its southward move as rising oil prices, a deteriorating geopolitical situation, and inflation fears left investors jittery. Uncertainty over the economic outlook triggered selling pressure, forcing the benchmark KSE-100 index to post losses for the second straight session.
Topline Securities Ltd said volatility persisted on the PSX, with the market fluctuating between gains and losses amid heightened uncertainty stemming from the ongoing US-Iran conflict and its impact on global oil prices.
The index initially climbed to an intraday high of 824 points at 177,800.28 before sharply reversing to an intraday low of 600 points at 176,375.01, reflecting heightened risk aversion and cautious investor sentiment. The market eventually settled at 176,466.99, down 508.69 points, or 0.29 per cent.
Meanwhile, the refinery sector remained the talk of the town, attracting significant investor interest and recording a sharp rise in traded volumes. Market chatter suggests that five refineries could sign their long-awaited upgrade agreements this week, further fuelling speculation and buying interest across the sector. Investors remained closely focused on the sector, making refineries one of the hottest themes on the local bourse.
On the positive side, Systems Ltd, Engro Holdings, Engro Fertiliser, Oil and Gas Development Company, and AGP Ltd were among the key contributors, collectively adding approximately 359 points to the KSE-100 Index. Conversely, Meezan Bank, MCB Bank, Bank Alfalah, and Lucky Cement emerged as major laggards, collectively subtracting approximately 294 points from the index.
Market participation weakened, with total traded volume falling 16.3pc to 784 million shares and traded value dipping 4.4pc to Rs37.4bn. Cnergyico PK led the volume chart with 191m shares.
According to Arif Habib Ltd, the KSE-100 continued its downward drift, moving further away from the 178,000-180,000 resistance zone.
Market participants remained cautious after data showed that Pakistan’s inflation accelerated faster than anticipated, with the August CPI rising by 11.15pc.
The brokerage said the uptick would keep policymakers on alert at a time when the escalating conflict in the Middle East threatens to exacerbate cost pressures and further complicate the economic outlook.
Sentiment was also hit by a renewed rise in global bond yields and oil prices. With negative news flow from the Middle East, risk assets came under pressure across regional markets.
“Unless there is another ‘TACO’ moment, pressure on risk will remain intense,” the brokerage noted.
Published in Dawn, September 2nd, 2026
