KARACHI: Extending last week’s bearish trend, the Pakistan Stock Exchange (PSX) on Monday continued its southward slide amid a worsening Middle East conflict, rising crude oil prices, and tighter supplies, all of which pose serious risks to the economic outlook as inflationary pressures soar, dragging the benchmark KSE-100 index below 168,000 points.
Topline Securities Ltd said the PSX was battered by aggressive selling as investor confidence took a sharp hit following Oman’s announcement that a scheduled meeting between Iran and Gulf countries concerning the Strait of Hormuz had been postponed. The delay in diplomatic talks renewed concerns over regional stability and the possibility of prolonged disruption along the Strait of Hormuz, a key global oil-transit route.
Meanwhile, international oil prices surged on news of the delay, raising concerns about global energy supplies, Pakistan’s import bill, inflation, and the external account. The development further weighed on investor sentiment.
Hormuz talks delay fuels energy supply, inflation fears
The index fell 2,541.20 points, or 1.49 per cent, to close at 167,970.66, after hitting an intraday low of 3,070 points at 167,441.64. The decline reflected broad-based selling and risk aversion, as geopolitical uncertainty continued to weigh on the market.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investor sentiment remained cautious amid the escalating US-Iran conflict and attacks on shipping through the Strait of Hormuz.
In addition, investors were looking forward to the State Bank of Pakistan’s Monetary Policy Committee decision, scheduled to be unveiled later in the evening, with most of the street expecting a status quo at 11.50pc in the benchmark interest rates for the next couple of months.
On the corporate front, Pakistan Petroleum reported earnings per share of Rs36.21 in FY26, up 7pc from Rs33.82 in FY25, and announced a final dividend of Rs6 per share, taking the total payout to Rs12 per share.
On the index contribution front, United Bank, Fauji Fertiliser, Lucky Cement, Oil and Gas Development Company, MCB Bank, Engro Holdings, Habib Bank, Bank Al-Habib, Fatima Fertiliser and Systems Ltd were the major laggards, collectively erasing 1,331 points.
Investor participation weakened, with trading volume down 17.01pc to 570.4 million shares and turnover plunging 26.79pc to Rs24.6bn. Cnergyico PK led the volume chart with 96.9m shares.
Published in Dawn, September 15th, 2026
