Pakistan Stock Exchange (PSX) lost its early gains on Thursday as higher oil prices, inflation concerns and uncertainty over US-Iran diplomatic efforts kept investors cautious.
The benchmark KSE-100 Index dropped 1,332.47 points, or 0.78%, to close at 168,636.85. The index moved between an intraday high of 170,688.38 and a low of 168,567.79.
The market opened positively, with the KSE-100 rising 300.84 points, or 0.18%, to 170,270.16 at 10:15am. However, selling pressure later pushed the index lower.
Global oil prices gained around 2% after China suspended oil product exports, raising concerns over tighter fuel supplies. Investors also remained focused on diplomatic efforts to resolve the US-Iran conflict.
Meanwhile, Pakistan’s inflation rate eased to 10.26% in September from 11.1% in August, mainly due to lower food prices. However, inflation remained above the State Bank of Pakistan’s medium-term target range.
AKD Securities analyst Muhammad Awais Ashraf said easing inflation, a stronger external account and reduced domestic political uncertainty could support investor confidence. He added that progress toward ending the US-Iran conflict could become an important market catalyst.
JS Global analyst Nawaz Ali said geopolitical tensions and rising crude prices had weakened sentiment, while domestic political uncertainty also encouraged investors to remain on the sidelines. He expected trading activity to stay subdued unless fresh triggers emerged.
According to KTrade Securities, sustained selling erased the index’s early gains. Kohinoor Textile, Services, Attock Refinery and Ibrahim Fibres supported the market, while Pakistan Petroleum, Hub Power, OGDC and Fauji Fertiliser weighed on the index.
Arif Habib Limited reported that 14 shares advanced while 86 declined. Kohinoor Textile, Services and Attock Refinery were among the leading positive contributors, while PPL, UBL and Hubco recorded the biggest negative impacts.
