KARACHI: Amid persistent geopolitical tensions, the Pakistan Stock Exchange (PSX) opened the week on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.
Topline Securities Ltd said the index closed marginally higher, gaining 124.95 points or 0.07 per cent to settle at 175,927.74, as strong late-session buying in heavyweight banking and refinery stocks erased sharp intraday losses. The market remained highly volatile throughout the session, reflecting cautious investor sentiment amid lingering geopolitical tensions and uncertainty in global energy markets.
The index traded within a wide 2,493-point range, reaching an intraday high of 176,129 (327 points) and an intraday low of 173,636 (-2,166 points) before recovering to close in positive territory. Value buying in select blue-chip stocks helped stabilise the market after early selling pressure.
On the sectoral front, banking and refinery stocks led the recovery, while selective buying in other index-heavy names provided further support to the benchmark. Nevertheless, overall market sentiment remained cautious as investors continued to monitor geopolitical developments and their potential implications for oil prices and foreign investment flows.
Late buying in banks, refineries offsets early losses
Najib Ali, Deputy Head of Trading at Arif Habib Ltd, said the PSX commenced the week on a weak footing, with the benchmark index opening nearly 2,000 points lower amid heightened geopolitical tensions between the US and Iran. Over the weekend, both countries exchanged strikes, further heightening uncertainty in the Middle East. The resulting risk-off sentiment also pushed international oil prices up by around 3pc at the open.
However, selective blue-chip buying interest helped stabilise market sentiment and enabled the benchmark index to recover from its intraday losses, resulting in a positive close.
United Bank, Attock Refinery, Cnergyico PK, Engro Holdings, and Hub Power emerged as the top contributors, collectively adding approximately 338 points to the benchmark. Conversely, Habib Bank, Millat Tractor, Engro Fertiliser, Pakistan Services Ltd, and Service Industries collectively erased 133 points.
Market activity remained relatively stable, with traded volume rising 8.83pc to 675.9 million shares and total turnover edging higher by 1.28pc to Rs30.2 billion.
Analysts expect investor sentiment to remain highly sensitive to geopolitical developments. Although attractive valuations may still lead to selective buying, a sustained market recovery will likely depend on de-escalating regional tensions.
Published in Dawn, July 21st, 2026