PSX closes above 165,000 points amid geopolitical tensions, rising oil prices | The Express Tribune

Pakistan’s benchmark KSE-100 Index ended marginally lower on Thursday, shedding 293 points to close at 165,517, as geopolitical tensions and surging oil prices kept investors on edge.

The market witnessed heightened volatility throughout the session, with the index plunging more than 3,500 points intraday before recovering some losses. The decline was largely driven by weak regional cues and a sharp rise in global oil prices, which hovered near $97–98 per barrel amid escalating tensions in the Middle East.

Investor sentiment remained fragile as concerns grew over renewed Israeli strikes in Lebanon and uncertainty surrounding Iran-US negotiations. Analysts noted that higher oil prices could exacerbate Pakistan’s external account pressures, adding to caution in equity markets, said Ahmed Sheraz, analyst at KASB KTrade.

Selling pressure was particularly evident in banking and exploration & production (E&P) stocks, where profit-taking dominated trading activity. Heavyweight stocks such as MARI, HUBC, MCB, and BAHL dragged the index lower.

Despite the overall negative trend, selective buying in cement and certain blue-chip stocks helped limit losses. Key positive contributions came from UBL, LUCK, DGKC, FABL, MLCF, and CHCC, which provided partial support to the index.

Trading activity remained robust, with volumes reaching 456 million shares. K-Electric, Bank of Punjab, and Fauji Cement led the volumes chart, reflecting continued retail participation.

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Market participants expect near-term volatility to persist, with investor focus shifting to upcoming Pakistan-facilitated talks between the United States and Iran. Analysts suggest that any diplomatic breakthrough could help stabilise sentiment, while continued tensions may keep markets under pressure.