KARACHI: The Pakistan Stock Exchange (PSX) failed to sustain its overnight recovery on Thursday, as escalating tensions in the Middle East shattered investor confidence, sparking fears of prolonged conflict, surging oil prices and rising inflation that threaten macroeconomic stability.
Topline Securities Ltd said the benchmark KSE-100 index witnessed a sharp sell-off, shedding 2,006.67 points, or 1.21 per cent, to close at 163,924.32, as escalating geopolitical tensions and rising international oil prices weighed on investor sentiment.
The benchmark initially touched an intraday high of 166,180.32, gaining 249 points, before plunging to a low of 163,782.42, losing 2,148 points, reflecting heightened volatility and mounting selling pressure.
Persistent geopolitical uncertainty, along with concerns over rising oil prices and their potential impact on Pakistan’s economic outlook, kept investors on the defensive. The absence of positive catalysts further dampened sentiment, and selling pressure intensified as the session progressed.
Index plunges 2,006 points as oil surge risks economic stability
Engro Holdings, United Bank, Hub Power, Habib Bank, Pakistan Telecommunication Company, Lucky Cement, Fauji Fertiliser, Attock Refinery, National Bank and Pakistan Petroleum emerged as the major laggards, collectively dragging the benchmark down by about 1,151 points and intensifying the market’s downward momentum.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said international oil prices surged amid heightened geopolitical tensions after fresh Houthi attacks in Saudi Arabia. Fears of a broader regional conflict and prolonged disruptions to Middle Eastern energy supplies weighed on investor sentiment, raising concerns over a higher energy import bill and mounting pressure on the country’s external account.
On the corporate front, key banks announced their 9MCY26 results, with Habib Bank, Meezan Bank and MCB Bank reporting earnings per share of Rs36.84, Rs41.02 and Rs37.26, respectively.
Investor participation remained moderate, with total trading volume dipping 3.37pc to 367 million shares and turnover falling 15.42pc to Rs17.9bn. Pakistan Refinery led the volume charts with 25.8m shares.
The session ended bearish, with the benchmark extending its losses amid persistent external headwinds. Analysts expect the market to remain sensitive to geopolitical developments and international oil price movements, with investors likely to stay cautious until greater clarity emerges.
Published in Dawn, October 23rd, 2026
