KARACHI: Rising geopolitical tensions took their toll on the Pakistan Stock Exchange (PSX) as jittery investors continued to offload their positions, sending the KSE-100 index below the 181,000-point barrier and extending the downtrend for the second straight session on Thursday.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the PSX witnessed a negative session, with the KSE-100 index closing the day at 181,456.34, down 1,113.48 points or 0.61 per cent.

He said the market momentum stayed muted as rising geopolitical tensions cast a long shadow over investor sentiment. Escalating uncertainty in the Middle East kept participants on the sidelines, prompting a cautious, wait-and-see approach and limiting risk appetite despite underlying market resilience.

For the next fortnight, the price of petrol is expected to decline by Rs4.68 per litre to Rs248.49, while high-speed diesel is likely to fall by Rs1.85 per litre to Rs255.23. The anticipated reduction in petroleum prices is primarily driven by a contraction in spreads for both petrol and diesel.

On the index front, United Bank, Engro Holdings, Systems Ltd, MCB Bank, and Engro Fertiliser emerged as major laggards, collectively dragging the index down by 623 points. In contrast, Oil and Gas Development Company, Pakistan Petroleum, Atlas Honda, Javedan Cement and Pioneer Cement attracted fresh buying interest, adding a combined 328 points.

Amid a persistent downturn, market participation weakened sharply, with trading volume falling 20.70pc to 820 million shares and traded value plunging 30.29pc to Rs46bn. Hascol Petroleum topped the volume chart with 62.6m shares.

Topline Securities Ltd noted that the trading remained volatile throughout the session, with the index touching an intraday high of 183,717 points and a low of 180,783 points.

Analysts expect the market to trade sideways within the 180,000-187,000 range amid geopolitical uncertainty, with any short-term dips presenting buying opportunities amid strong fundamentals.

Published in Dawn, January 16th, 2026