KARACHI: Rising geopolitical tensions rattled the Pakistan Stock Exchange (PSX) on Thursday, pushing the benchmark KSE-100 index below the 181,000-point mark for the second consecutive session. Investors offloaded positions amid heightened uncertainty in the Middle East, with risk appetite remaining muted despite underlying market resilience.
Read More: PSX equities slide 2,025 points amid profit-taking
The KSE-100 index closed at 181,456.34 points, down 1,113.48 points, or 0.61 per cent, according to Ali Najib, Deputy Head of Trading at Arif Habib Ltd. “The market momentum stayed muted as rising geopolitical tensions cast a long shadow over investor sentiment,” he said, adding that participants adopted a cautious, wait-and-see approach.
Major laggards included United Bank, Engro Holdings, Systems Ltd, MCB Bank, and Engro Fertiliser, which collectively subtracted 623 points from the index. On the other hand, Oil and Gas Development Company, Pakistan Petroleum, Atlas Honda, Javedan Cement, and Pioneer Cement saw buying interest, contributing 328 points to the market.
Trading activity weakened sharply, with volumes falling 20.7 per cent to 820 million shares and traded value dropping 30.3 per cent to Rs46 billion. Hascol Petroleum topped the volume chart with 62.6 million shares traded. The index touched an intraday high of 183,717 points and a low of 180,783 points, reflecting continued volatility, according to Topline Securities Ltd.
Analysts said short-term market movements will remain heavily influenced by geopolitical developments, and any dips could present buying opportunities for investors confident in the market’s fundamentals. Petrol and high-speed diesel prices are expected to fall next fortnight, with petrol projected to decrease by Rs4.68 to Rs248.49 per litre and diesel by Rs1.85 to Rs255.23, potentially providing some relief to the economy.
Read More: PSX enjoys unprecedented gains in early 2026
Despite the volatility, market watchers remain cautiously optimistic, noting that underlying economic indicators and corporate earnings may support a recovery once regional tensions ease.