KARACHI: The Pakistan Stock Exchange (PSX) on Monday failed to sustain the weekend’s mild recovery, as the situation in the Middle East and political uncertainty weighed on investor sentiment, triggering profit-taking across the board.
This pressure forced the benchmark KSE-100 index to close below 174,000 points, with rising oil prices posing renewed economic challenges amid elevated inflationary pressures.
Topline Securities Ltd said the index extended its decline, closing at 173,636.08, down 1,692.74 points, or 0.97 per cent, after trading between an intraday high of 175,353 and a low of 173,603.
The brokerage noted that market sentiment remained cautious amid renewed US-Iran geopolitical tensions and elevated international oil prices, heightening concerns about inflationary pressures, the external account, and overall macroeconomic stability.
Rising crude and Strait of Hormuz concerns weigh on sentiment
The refinery sector came under selling pressure after reports that the federal government has decided to impose financial penalties on oil refineries that fail to execute upgradation agreements with the Ministry of Energy by Oct 1. The development raised concerns about potential financial implications for refinery companies.
United Bank, Oil and Gas Development Company, Pakistan Petroleum, MCB Bank, and Fauji Fertiliser were among the major drags, collectively shedding 811 points from the benchmark. Conversely, Pakistan Services Ltd (PSEL), Askari Bank, and Adamjee Insurance Company Ltd provided some support, collectively adding around 117 points.
Investor participation weakened sharply, with the total trading volume falling 22.31pc to 679.18 million shares and the turnover value plunging 26.91pc to Rs23.6 billion.
According to Arif Habib Ltd (AHL), the 175,000-point support was breached during the session as the market continued to move towards the July lows of 170,000.
The brokerage said PSEL rallied after media reports of an out-of-court settlement over a dispute involving the company’s hotel properties and a controlling vote in its operations.
The parties to the dispute, including Thatta Cement and Fauji Foundation, have reportedly signed a memorandum of understanding to settle the dispute.
However, in a stock exchange filing, PSEL said it had no knowledge of the contents of the media report and that cases relating to its shareholding were currently sub judice.
Separately, Iran said a deal with Oman to manage shipping through the Strait of Hormuz was days away, a development likely to heighten tensions over the waterway.
Published in Dawn, September 8th, 2026
