Stocks drift lower on geopolitical tensions

Published
0

KARACHI: The Pakistan Stock Exchange (PSX) opened the week on a bearish note as elevated oil prices, amid a stalemate in US-Iran talks to end the war, continued to push up energy import costs, adding to inflationary pressures and fuelling uncertainty about the economic outlook.

Topline Securities Ltd said the KSE-100 index traded range-bound, closing at 170,425.62 points, down 339.60 points, or 0.20 per cent. The index traded between an intraday high of 171,126.52 and a low of 170,120.50.

The session maintained a risk-off tone, with investors cautious amid renewed geopolitical uncertainty and elevated international oil prices. Brent crude rose above $106 per barrel, heightening concerns about inflationary pressures and the domestic external account.

TRG Pakistan Ltd, Fauji Fertiliser, Oil and Gas Development Company, Attock Refinery, and Hub Power were the major contributors to the index, collectively adding approximately 265 points. By contrast, United Bank, Habib Bank, and Lucky Cement were the leading drags, collectively shaving around 235 points from the benchmark.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investor sentiment remained fragile throughout the session, as persistent geopolitical uncertainty kept market participants on the sidelines, particularly after media reports that US President Trump rejected an Iranian ceasefire proposal regarding the Strait of Hormuz and declined to comment on potential post-midterm military actions.

Investor participation weakened as trading volume dipped 12.78pc to 421 million shares and turnover value fell 8.02pc to Rs17.7 billion. Cnergyico PK led the volume chart with 61.5 million shares.

Analysts expect the market to remain volatile, with selective buying likely if geopolitical tensions ease and oil prices trend lower.

However, elevated energy prices, external sector risks, and the ongoing IMF review will remain key factors shaping market direction.

Published in Dawn, September 29th, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Climate challenges
Updated 13 Nov, 2026

Climate challenges

Pakistan cannot afford to confront its climate crises one disaster, one season and one international summit at a time.
Under fire
Updated 13 Nov, 2026

Under fire

KP police are increasingly vulnerable as they play a frontline role in ongoing operations against terrorists.
Used car imports
13 Nov, 2026

Used car imports

THE government’s effort to restrict used car imports appears to be faltering. So suggest the numbers. Despite...
Iran status quo
Updated 12 Nov, 2026

Iran status quo

The US cannot hold the world hostage in order to find an honourable exit from a disastrous war for which it has only itself — and Israel — to blame.
Unspent funds
12 Nov, 2026

Unspent funds

THE slow pace of development spending shows how public investment continues to bear the brunt of efforts to create a...
Homes and hope
12 Nov, 2026

Homes and hope

THE completion of more than one million homes for families displaced by the 2022 floods is a moment worth...