Equities lose 721 points on oil, inflation spike

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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

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