PSX slides 721 points as Middle East tensions lift oil prices and inflation fears rise
The KSE‑100 fell 0.41% to 176,975.68 amid renewed US‑Iran tensions, Brent crude breaching $90/barrel and heightened inflation pressures, dragging most sectors lower.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Overall market sentiment turned negative due to oil price spikes and inflation fears; avoid buying most listed stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- BanksNegatively affected
- CementNegatively affected
- FertilizerNegatively affected
- PowerNegatively affected
- TransportNegatively affected
Companies
Companies Mentioned
- OGDC· Negatively affected · Do not buy
- ATTK· Negatively affected · Do not buy
- CNER· Negatively affected · Do not buy
- UDB· Negatively affected · Do not buy
- HBL· Negatively affected · Do not buy
- UBL· Negatively affected · Do not buy
- LUCK· Negatively affected · Do not buy
- FFC· Negatively affected · Do not buy
- PPL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Oil & Gas, Banks, Cement, Fertilizer, Power, Transport — Negative · Do not buy. PSX tickers: OGDC, ATTK, CNER, UDB, HBL, UBL, LUCK, FFC, PPL. Overall market sentiment turned negative due to oil price spikes and inflation fears; avoid buying most listed stocks.
Full Story
Open on Dawn## Market Overview
The Pakistan Stock Exchange opened lower on Monday after a modest rebound over the weekend. Topline Securities reported the benchmark KSE‑100 index closed at 176,975.68, down 720.83 points (‑0.41%). The decline was driven by renewed geopolitical friction between the United States and Iran, which revived concerns over possible disruptions to oil flows through the Strait of Hormuz.
## Oil Prices and Inflation
Brent crude climbed above $90 per barrel, adding to market anxiety. At the same time, inflationary pressures intensified, led by higher transportation costs and a sharp rise in food prices. Analysts expect the State Bank of Pakistan to keep monetary policy tight at its next review, meaning costly financing and a higher cost of doing business will likely dampen economic activity in the near term.
## Sector Contributions
- Gainers (+408 points): Attock Refinery, Oil & Gas Development Company (OGDC), Fauji Fertiliser, Meezan Bank, and Cnergyico PK. - Draggers (‑755 points): United Bank, Systems Ltd, Habib Bank, Lucky Cement, and Pakistan Petroleum.
## Refinery Activity
Deputy Head of Trading at Arif Habib Ltd, Ali Najib, noted the market remained range‑bound, but the refinery segment saw strong buying ahead of expected refinery up‑gradation agreements. National Refinery and Pakistan Refinery hit their upper price circuits, while Attock Refinery and Cnergyico PK posted gains of 8.44% and 7.31% respectively.
## Corporate Updates
Indus Motor announced FY26 profit after tax of Rs 25.5 billion and earnings per share of Rs 324.50, an 11% year‑on‑year increase. However, 4QFY26 PAT fell 5% to Rs 6.1 billion. The company declared a Rs 47 per share dividend, taking the FY26 cumulative payout to a record Rs 195 per share.
## Trading Activity
Investor participation surged in the bearish environment, with trading volume up 42.37% to 931.7 million shares and turnover rising 24.41% to Rs 39.13 billion. Cnergyico PK led the volume chart with 293 million shares traded.
## Outlook
Analysts caution that geopolitical developments and oil price movements will continue to dominate market direction, keeping the PSX under pressure.