KARACHI: Bears tightened their grip on the stock market on Friday as sluggishness amid geopolitical and economic challenges left equity investors on edge, prompting some to offload positions and pushing the benchmark KSE-100 index below 168,000 intraday. The index settled lower for the second consecutive session.

Topline Securities Ltd said the index traded mostly in negative territory during the session and settled at 168,155 points, down 0.29 per cent. Investor participation remained subdued amid a lack of fresh triggers, elevated crude oil prices, and the ongoing stalemate in US-Iran relations. Market activity stayed muted, with traded volume and value recorded at 492m shares and Rs17.45bn, respectively.

The top negative contributors to the index were Systems Ltd, Meezan Bank, Lucky Cement, National Bank, and Habib Bank, which cumulatively weighed on the index by 269 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the benchmark index carried forward yesterday’s fragile momentum but opted to remain on the sidelines due to geopolitical uncertainty.

According to media reports, France has proposed releasing 50 million barrels of diesel from Europe and 50 million barrels of crude oil across IEA members. As a result, international oil prices fell by more than 2pc. However, this did not lure bulls back to the PSX, ultimately leading to a negative close.

On the macro front, the Sensitive Price Index (SPI) for the week ended Oct 1 rose 11.53pc year-on-year and 0.21pc week-on-week. In addition, PBS reported that Pakistan’s trade deficit widened to $3.6bn in September, as exports rose 17.6pc year-on-year to $2.9bn, while imports increased 11pc to $6.5bn.

Analysts expect market sentiment to remain volatile, with selective buying likely if geopolitical tensions continue to ease and oil prices trend lower. However, elevated energy prices, external-sector risks, and the ongoing IMF review will continue to shape market direction.

Published in Dawn, October 3rd, 2026