KSE-100 down 254 points as geopolitical tensions escalate

KARACHI: The Pakistan Stock Exchange (PSX) started the day on a positive note. However, the market witnessed selling pressure later in the session amid geopolitical tensions, and the benchmark KSE-100 index dropped by 254 points.

The index closed lower by 254.32 points, or 0.21 per cent, to 121,971.04 points, down from 122,225.36 points recorded in the last session. The highest index of the day remained at 122,891.61 points, while the lowest level was recorded at 121,815.39 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed lower due to a global equities sell-off driven by geopolitical uncertainty, as well as the State Bank of Pakistan’s decision to maintain the policy rate amid concerns over inflationary fallout from the Israel-Iran conflict.”

He said that a weakening rupee due to Middle East tensions and rising imports played a catalytic role in the negative close at the PSX.The KSE-30 index decreased by 43.14 points or 0.12 per cent to 36,912.96 points from 36,956.1 points.

Traded shares dropped by 72 million shares to 1,152.012 million shares from 1,224.178 million shares. The trading value increased to Rs27.983 billion from Rs25.75 billion. Market capital narrowed to Rs14.78 trillion against Rs14.801 trillion. Of the 473 companies active in the session, 193 closed in green, 244 in red and 36 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the PSX witnessed a volatile session, closely tracking global market cues.Amid growing geopolitical uncertainty surrounding tensions between Iran and Israel, investors opted to stay cautious, leading to a lack of clear direction throughout the session. Sentiment remained fragile as the market struggled to find firm footing, he said.

On the upside, index-heavyweights UBL, HBL, SYS, and OGDC provided some support, jointly contributing 219 points. However, losses in PKGP, LUCK, ENGROH, and HUBC offset those gains, dragging the index down by a combined 291 points.

The highest increase was recorded in Macter International Limited, which rose by Rs42.47 to Rs467.18 per share, followed by SS Oil Mills Limited, which increased by Rs39.02 to Rs794.89 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs1,700.02 to Rs15,300.17 per share; Khyber Textile Mills Limited followed it, which closed lower by Rs158.06 to Rs1,457.04 per share.

Analyst Mubashir Anis Naviwala at JS Global said the market opened on a positive note. However, profit-taking pressure erased all gains, pulling the index into the red. Trading was dominated by small-cap stocks, reflecting speculative short-term interest.

He said the broader trend remains uncertain, with investors showing caution ahead of key developments. “We advise maintaining a defensive approach and avoiding aggressive exposure for now,” he said. “Risk management is crucial amid ongoing geopolitical tensions and macroeconomic headwinds.”

WorldCall Telecom remained the volume leader with 239.756 million shares, which closed lower by one paisa to Rs1.61 per share. Pervez Ahmed Co, with 97.496 million shares, followed it, which closed lower by 5 paisas to Rs3.88 per share.

Other significant turnover stocks included Sui South Gas, Ist Capital Sec, BO Punjab, Bank Makramah, Kohinoor Spinning, Prud Mod1st, PIA Holding Company, and First Dawood Prop. In the futures market, 317 companies recorded trading, 125 of which increased, 189 decreased and 3 remained unchanged.