KARACHI: The resurgence in oil prices stemming from the stalemate on the Middle East conflict and an uncertain political situation left investors jittery, as the economic outlook remained clouded. As a result, the Pakistan Stock Exchange (PSX) on Tuesday witnessed aggressive selling pressure, forcing the benchmark KSE-100 index to fall below the 180,000-point resistance level.
Topline Securities Ltd said the PSX witnessed a sharp sell-off, with the index declining by 2,546.94 points, or 1.41 per cent, to close at 177,955 points. The index traded between an intraday high of 180,602 and a low of 177,866, reflecting heightened volatility and broad-based selling.
Investor sentiment remained weak amid political uncertainty and rising international oil prices, prompting investors to reduce exposure across major sectors, the brokerage noted.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market opened on a positive note, briefly touching an intraday high of 180,602.44. However, renewed tensions between the US and Iran, coupled with aggressive statements from both sides, pushed international oil prices higher and weighed on investor sentiment, triggering broad-based profit-taking.
On the sectoral front, power demand rebounded 7.1pc year-on-year to 15,122MW in July, standing 2.3pc above the seven-year July average, signalling improving activity in the power sector and broader economic growth.
On the index contribution front, United Bank, Fauji Fertiliser, Meezan Bank, Engro Holdings, Oil and Gas Development Company, Pakistan Petroleum, Hub Power, Mari Energies, MCB Bank, and Lucky Cement collectively erased 1,465 points amid broad-based selling.
Market participation weakened as the trading volume fell 0.86pc to 1.03 billion shares. However, the traded value rose 4.99pc to Rs50.7 billion. Cnergyico PK topped the volume chart with 231.4m shares traded.
Analysts predict increased volatility and targeted profit-taking, with geopolitical events and oil prices continuing to influence market trends.
Published in Dawn, August 19th, 2026
