Shares on the Pakistan Stock Exchange (PSX) drifted lower on Monday as rising oil prices and the stalemate in talks between the United States and Iran kept investors cautious.
The benchmark KSE-100 index closed at 170,425.62 points, down 339.60 points or 0.20 per cent, Dawn reported.
The day in numbers
| Measure | Figure |
|---|---|
| KSE-100 close | 170,425.62 |
| Change | Down 339.60 points (-0.20%) |
| Intraday high | 171,126.52 |
| Intraday low | 170,120.50 |
| Volume | 421 million shares (down 12.78%) |
| Value traded | Rs17.7 billion (down 8.02%) |
| Most traded stock | Cnergyico PK, 61.5 million shares |
Winners and losers
Gains in energy, technology and fertiliser shares softened the fall.
| Supported the index | Weighed on the index |
|---|---|
| TRG Pakistan | United Bank |
| Fauji Fertiliser | Habib Bank |
| Oil and Gas Development Company | Lucky Cement |
| Attock Refinery | |
| Hub Power |
The five stocks that rose added about 265 points to the index between them, while United Bank, Habib Bank and Lucky Cement together took off about 235 points.
Oil and Iran
The main pressure came from outside Pakistan. Brent crude rose above $106 a barrel as the ceasefire talks between the United States and Iran remained deadlocked, fuelling concern about inflation and the cost of Pakistan’s energy imports.
“Investor sentiment remained fragile throughout the session,” said Ali Najib, deputy head of trading at Arif Habib Ltd, pointing to the geopolitical uncertainty and reports that US President Donald Trump had rejected an Iranian ceasefire proposal.
Later on Monday, oil jumped further to about $107 a barrel, and on Tuesday Trump denied offering Iran sanctions relief as Tehran sent its conditions for reopening the Strait of Hormuz.
Why oil matters for the PSX
Pakistan imports around 70 per cent of its oil and gas, so higher oil prices raise the import bill, put pressure on the rupee and push up inflation, all of which can weigh on share prices. At the same time, some energy companies, such as oil producers and refiners, can benefit from higher prices, and OGDC and Attock Refinery were among Monday’s gainers.
The wider picture
The market is also watching talks with the International Monetary Fund, whose mission is in Islamabad reviewing Pakistan’s loan programme, which could unlock about $1.2 billion. Qatar has meanwhile extended its halt on LNG deliveries to Pakistan through November, adding to concern about energy supplies this winter.
Quieter trading
The fall in volume and value, by about 13 per cent and 8 per cent respectively, suggests many investors chose to wait on the sidelines rather than take big positions while the situation in the Gulf remains uncertain.
A firmer start on Tuesday
Buyers returned when trading opened on Tuesday. The KSE-100 gained more than 300 points in the first minutes, reaching 170,749.97, up 324.35 points or 0.19 per cent at 9:35am, Business Recorder reported, with buying in car assemblers, cement, banks, fertiliser, oil and gas exploration companies and oil marketing companies.
Why it matters
Monday’s fall was modest, at 0.2 per cent. But with oil above $100 and no breakthrough in talks between Washington and Tehran, the index is likely to stay sensitive to news from the region in the days ahead.
This article draws on reporting by Dawn and Business Recorder.
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