KARACHI: Although the Pakistan Stock Exchange (PSX) managed to post marginal gains in a topsy-turvy session on Thursday, snapping a three-session losing streak, investor sentiment remained choppy as the Middle East conflict and political uncertainty continued to shake investor confidence.
Topline Securities Ltd said the market saw a volatile session, with the benchmark KSE-100 index opening higher and climbing to an intraday high of 1,019 points at 175,796.25. However, the early momentum failed to hold as profit-taking emerged in the latter half of the session, with the index swinging to an intraday low of 117 points at 174,893.68.
Eventually, the benchmark closed at 174,929.69, up 153 points, or 0.09 per cent, reflecting extreme volatility amid continued investor caution.
The volatility is primarily driven by the persistent geopolitical conflict, which continues to influence global energy markets. Rising international oil prices remain a significant concern for investors due to their potential effects on Pakistan’s external account, inflation, and overall macroeconomic stability.
Mideast tensions, profit-taking keep investors cautious
On the positive front, Pakistan successfully raised $3 billion through a landmark dual-tranche Eurobond transaction, marking Pakistan’s largest-ever international bond issuance in a single transaction.
On the negative side, Bank Al-Habib, United Bank, Pakistan Petroleum, Service Industries and Attock Refinery were the major losers, collectively dragging the index down by approximately 196 points. Conversely, Engro Holdings, Lucky Cement, and National Bank provided support, collectively adding approximately 167 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed a flattish session as market sentiment remained mixed amid intensifying US-Iran tit-for-tat military strikes, with Iran targeting merchant vessels and the US striking IRGC sites, while oil prices continued to rise.
Market participation remained relatively subdued, with total traded volume reaching 627 million shares and traded value plunging 20.94pc to Rs25.18bn. Tasdeeq Information emerged as the volume leader, with around 95 million shares.
Published in Dawn, September 4th, 2026
