Equities lose 721 points on oil, inflation spike

Published
0

KARACHI: After a mild recovery in the weekend session, the Pakistan Stock Exchange (PSX) slipped again on Monday as rising tensions in the Middle East and the subsequent surge in oil prices rekindled investor fears about the economic outlook.

Topline Securities Ltd said the benchmark KSE-100 index remained under pressure, closing at 176,975.68, down 720.83 points, or 0.41 per cent, amid renewed US-Iran tensions. Concerns about potential disruptions to oil supplies via the Strait of Hormuz pushed Brent crude above $90 per barrel, weighing on market sentiment.

Inflationary pressures intensified, driven primarily by high transportation costs and a surge in food prices, suggesting no easing of monetary policy at the State Bank of Pakistan’s upcoming review, which means costly money and high cost of doing business would continue to depress economic activity in the near term.

On the index contribution front, Attock Refinery, Oil and Gas Development Company, Fauji Fertiliser, Meezan Bank and Cnergyico PK collectively added 408 points. Conversely, United Bank, Systems Ltd, Habib Bank, Lucky Cement, and Pakistan Petroleum cumulatively weighed down the index by 755 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX remained range-bound. However, the refinery sector saw strong buying ahead of the expected signing of refinery upgradation agreements in the coming days, according to media reports.

Consequently, National Refinery and Pakistan Refinery hit their upper circuits, while Attock Refinery and Cnergyico PK gained 8.44pc and 7.31pc, respectively.

On the corporate front, Indus Motor reported FY26 profit after tax (PAT) of Rs25.5bn and earnings per share (EPS) of Rs324.50, up 11pc year on year. However, 4QFY26 PAT declined 5pc year on year to Rs6.1bn. The company announced a Rs47 per share dividend, taking the FY26 cumulative payout to a record Rs195 per share.

A sharp surge in investor participation in a bearish market reflects panic selling, with trading volume increasing by 42.37pc to 931.7 million shares and turnover value rising by 24.41pc to Rs39.13bn. Cner­gyico PK topped the volume chart with 293m shares.

Analysts expect geopolitical developments and oil prices to remain key market drivers.

Published in Dawn, September 1st, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fixing bond markets
01 Oct, 2026

Fixing bond markets

THE plan to deepen the domestic local currency bond market by allowing the public to trade government securities...
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...