PSX selling pressure persists as KSE-100 slides over 1% amid geopolitical tension and oil price surge
The KSE-100 index fell 1.07% in early trade, with broad selling across automobile, cement, banking, oil & gas and power stocks as Middle‑East conflict and rising crude prices weigh on market sentiment.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Broad sell‑off in Automobile, Cement, Banks, Oil & Gas and Power sectors – negative outlook, avoid buying.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- AutomobileNegatively affected
- CementNegatively affected
- BanksNegatively affected
- Oil & GasNegatively affected
- PowerNegatively affected
Companies
Companies Mentioned
- ARL· Negatively affected · Do not buy
- HUBCO· Negatively affected · Do not buy
- OGDC· Negatively affected · Do not buy
- PPL· Negatively affected · Do not buy
- POL· Negatively affected · Do not buy
- MARI· Negatively affected · Do not buy
- MCB· Negatively affected · Do not buy
- MEBL· Negatively affected · Do not buy
- NBP· Negatively affected · Do not buy
- UBL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Automobile, Cement, Banks, Oil & Gas, Power — Negative · Do not buy. PSX tickers: ARL, HUBCO, OGDC, PPL, POL, MARI, MCB, MEBL, NBP, UBL. Broad sell‑off in Automobile, Cement, Banks, Oil & Gas and Power sectors – negative outlook, avoid buying.
Full Story
Open on Business Recorder## Market overview
The Pakistan Stock Exchange opened on Friday under heavy selling pressure. By 9:20 am the benchmark KSE‑100 index was at 167,050.31, down 1,814.73 points or 1.07% from the previous close.
## Sectoral impact
Key sectors that recorded declines included: - Automobile assemblers - Cement - Commercial banks - Oil & gas exploration companies - Oil marketing companies (OMCs) - Power generation
Index‑heavy stocks such as ARL, HUBCO, OGDC, PPL, POL, MARI, MCB, MEBL, NBP and UBL all traded in the red.
## Recent backdrop
The sell‑off follows a larger pullback on Thursday when renewed US‑Iran hostilities and a sharp rise in international crude prices pushed the KSE‑100 down 1.79% to 168,865.04 points. Global bond yields spiked and equity markets across Asia and the United States slipped as investors priced in higher inflation risks and tighter monetary policy.
## Geopolitical drivers
Brent crude rose to a four‑month high of $109.97 a barrel after a 6% overnight jump, driven by restricted oil flows through the Strait of Hormuz and the Houthi seizure of Yemen’s Mocha port, which threatens Saudi exports in the Red Sea. The escalating conflict between the US and Iran has heightened concerns about a protracted war, further unsettling risk‑averse investors.
## International market reaction
Higher global yields lifted discount rates used for corporate valuations, dragging Asian equity indices lower. MSCI’s broad Asia‑Pacific index fell 1.8%, Japan’s Nikkei dropped 2.8%, Chinese blue‑chips slipped 1.2% and Hong Kong’s Hang Seng fell 1.5%. US Nasdaq futures were down 0.2% while S&P 500 futures were largely unchanged.
## Outlook
With oil prices remaining elevated and geopolitical tensions persisting, the Pakistani market is likely to stay under pressure in the near term. Investors should monitor developments in the Middle East and any policy responses that could affect inflation and external balances.