KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday failed to sustain the overnight mild recovery driven by value-hunting, as investor sentiment turned bearish again amid unabated daily hikes in petroleum prices, fuelling inflationary pressures and pushing up the cost of production, which hit economic activity.
Topline Securities Ltd said the PSX remained firmly in the bears’ grip, as elevated international oil prices and persistent regional tensions continued to weigh on investor sentiment. Concerns about macroeconomic stability and external account pressures prompted investors to lock in gains, further intensifying selling pressure across the market.
The KSE-100 index tumbled 1,370.52 points, or 0.86 per cent, to close at 168,021.80, after touching an intraday low of 1,542 points at 167,849.70, reflecting a cautious, risk-averse trading environment.
Selling pressure was further intensified by local institutional investors, who aggressively trimmed their positions amid heightened geopolitical uncertainty and growing concerns about a prolonged disruption in global oil markets.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investor sentiment remained cautious amid the escalating US-Iran conflict and disruptions to shipping through the Strait of Hormuz. Oil prices were trading above $104 per barrel, raising concerns about higher domestic fuel prices, renewed inflationary pressures, a widening import bill, and potential implications for the monetary policy outlook.
On the corporate front, Millat Tractors Ltd announced its FY26 results, reporting earnings per share of Rs19.65, up 23pc from Rs15.97 in FY25. The company also announced a cash dividend of Rs11 per share, bringing its cumulative FY26 dividend to Rs21 per share.
Fauji Fertiliser Company, National Bank, Engro Holdings, Habib Bank, Lucky Cement, Bank Alfalah, Pakistan Petroleum, Millat Tractors, Pakistan Telecommunication, and Mari Energies emerged as the top laggards, collectively dragging the index down by 932 points.
Market participation remained subdued as trading volume slipped 4.26pc to 356.13 million shares. However, traded value rose 13.22pc to Rs19.4bn. WorldCall Telecom led the volume chart with 40m shares.
Analysts believe that geopolitical developments and high oil prices will continue to significantly influence market trends, while external factors will also require careful observation.
Published in Dawn, September 17th, 2026
