Geopolitical tensions push KSE‑100 below 175,000 as oil prices surge
Escalating US‑Iran hostilities lifted crude prices, deepening inflation worries in Pakistan and dragging the benchmark index to 174,777, a near‑monthly low.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Banks, Oil & Gas, Fertilizer and Cement stocks fell amid higher oil prices and US‑Iran tensions – avoid buying these tickers for now.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- BanksNegatively affected
- Oil & GasNegatively affected
- FertilizerNegatively affected
- CementNegatively affected
Companies
Companies Mentioned
- MEBL· Negatively affected · Do not buy
- UBLC· Negatively affected · Do not buy
- PPL· Negatively affected · Do not buy
- FFBL· Negatively affected · Do not buy
- LUCK· Negatively affected · Do not buy
- EFERT· Negatively affected · Do not buy
- THALL· Negatively affected · Do not buy
- AKBL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Banks, Oil & Gas, Fertilizer, Cement — Negative · Do not buy. PSX tickers: MEBL, UBLC, PPL, FFBL, LUCK, EFERT, THALL, AKBL. Banks, Oil & Gas, Fertilizer and Cement stocks fell amid higher oil prices and US‑Iran tensions – avoid buying these tickers for now.
Full Story
Open on Dawn## Market reaction
The KSE‑100 index closed at 174,776.60, down 1,690.40 points (‑0.96%). Trading ranged between a high of 175,841 and a low of 174,562. Investor sentiment remained bearish throughout the session as renewed US‑Iran fighting lifted international oil prices and heightened economic uncertainty for Pakistan, a net oil‑importing economy.
## Sectoral impact
The decline was led by heavyweights in banking, oil & gas, fertilizer and cement. Meezan Bank, United Bank, Pakistan Petroleum, Fauji Fertiliser and Lucky Cement together pulled the index down by roughly 604 points. On the flip side, Engro Fertiliser, Thal Ltd and Askari Bank added about 139 points of support, but were insufficient to offset the broader sell‑off.
## Commentary
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market stayed under pressure as both sides of the US‑Iran conflict continued to exchange strikes, keeping risk appetite low. He noted that the ongoing earnings season could see further stock‑specific volatility, but the dominant theme remains geopolitical risk and rising oil costs.
## Macro backdrop
Pakistan is preparing a $2 billion Eurobond issue to refinance bilateral loans from Saudi Arabia and China, a move that could provide some fiscal relief but is unlikely to offset the immediate impact of higher energy import bills.
## Trading activity
Volume fell 22.21% to 610 million shares and turnover dropped 14.83% to Rs 31.8 billion, reflecting cautious participation.
## Outlook
Analysts expect targeted profit‑taking amid earnings releases, while oil price movements and geopolitical developments will continue to dominate market sentiment.