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Business & Commerce

PSX Ends Lower as Middle East Tensions Trigger Broad-Based Selling

Last updated: August 7, 2026 6:49 pm
Yamna Shahid
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PSX Ends Lower as Middle East Tensions Trigger Broad-Based Selling
PSX Ends Lower as Middle East Tensions Trigger Broad-Based Selling
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KARACHI: The Pakistan Stock Exchange (PSX) closed in negative territory on Friday as cautious investors reduced their exposure amid concerns that escalating tensions in the Middle East could further unsettle regional markets.

The benchmark KSE-100 Index fell 346.57 points, or 0.19%, to settle at 181,430.02. During the session, the index touched an intraday high of 181,647.27 before slipping to a low of 180,620.08.

Investor sentiment remained subdued throughout the day, with market participants largely adopting a wait-and-see approach ahead of the weekend. Despite the recent joint defence agreement between Pakistan, Saudi Arabia and Turkiye, uncertainty surrounding the regional conflict continued to weigh on risk appetite.

Selling pressure was particularly visible in major index-heavy sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies and oil marketing companies.

Rising international crude prices also added to investor concerns over the possible effects of prolonged regional instability on inflation, energy costs and the wider economy.

According to Arif Habib Limited Deputy Head of Trading Ali Najib, the market experienced a mixed session before investors began reducing positions during the second half of trading. He said the decline reflected a cautious market mood rather than any major deterioration in Pakistan’s domestic economic fundamentals.

On the corporate front, Mari Energies reported record earnings of Rs87 billion for FY26, while its fourth-quarter earnings per share rose significantly year-on-year. The company’s performance was supported by higher oil prices, increased production from the HRL field, the start of production at Spinwam and a tax reversal.

Hub Power, Mari Energies, Cnergyico PK, Ghani Glass and Bank of Punjab provided support to the benchmark, collectively contributing 187 points. However, selling in Engro Holdings, UBL, MCB, Engro Fertiliser and Fatima Fertilisers offset those gains, dragging the index lower.

Najib said the market could remain range-bound in the near term as investors await fresh economic and corporate developments. He added that easing geopolitical tensions, stable oil prices and positive corporate earnings could improve sentiment, although profit-taking at higher levels may continue to cause volatility.

Trading activity also eased during the session, with total volume falling to 716 million shares from 793.3 million a day earlier. The value of traded shares stood at Rs34.1 billion.

Cnergyico PK remained the volume leader, with 161.2 million shares changing hands. Its stock gained Rs0.69 to close at Rs11.94.

A total of 492 companies traded on the exchange. Of these, 207 stocks advanced, 260 declined and 25 remained unchanged.

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