PSX slips below 174,000 as profit‑taking and Middle‑East tensions bite
The KSE‑100 index closed at 173,636 points, down nearly 1% amid profit‑taking, rising oil prices and renewed US‑Iran tensions, with banks, oil‑&‑gas and fertilizer stocks leading the decline.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Banks, Oil & Gas, Fertilizer and Insurance stocks are under pressure – avoid buying these sectors for now.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- BanksNegatively affected
- Oil & GasNegatively affected
- FertilizerNegatively affected
- InsuranceNegatively affected
Companies
Companies Mentioned
- UBL· Negatively affected · Do not buy
- MCB· Negatively affected · Do not buy
- OGDC· Negatively affected · Do not buy
- PPL· Negatively affected · Do not buy
- FFBL· Negatively affected · Do not buy
- AICL· Negatively affected · Do not buy
- AKBL· Negatively affected · Do not buy
- PSEL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Banks, Oil & Gas, Fertilizer, Insurance — Negative · Do not buy. PSX tickers: UBL, MCB, OGDC, PPL, FFBL, AICL, AKBL, PSEL. Banks, Oil & Gas, Fertilizer and Insurance stocks are under pressure – avoid buying these sectors for now.
Full Story
Open on Dawn## Market overview
The Pakistan Stock Exchange failed to hold the modest gains recorded over the weekend. The benchmark KSE‑100 index closed at 173,636.08, a drop of 1,692.74 points (‑0.97%). Trading ranged between an intraday high of 175,353 and a low of 173,603.
## Drivers of the sell‑off
Brokerages cited cautious sentiment driven by renewed US‑Iran geopolitical friction and a surge in international crude prices, which revive concerns over inflation, the external account deficit and overall macro‑economic stability.
## Sectoral impact
* Banks – United Bank (UBL) and MCB Bank (MCB) were among the heavy drags, together pulling the index down by several hundred points. * Oil & Gas – Oil and Gas Development Company (OGDC) and Pakistan Petroleum (PPL) fell sharply as higher crude prices raised cost pressures and the market reacted to reports of pending penalties for refineries that miss up‑gradation deadlines. * Fertilizer – Fauji Fertiliser (FFBL) also contributed to the decline. * Insurance – Adamjee Insurance Company (AICL) added to the downward momentum. * Other contributors – Askari Bank (AKBL) and Pakistan Services Ltd (PSEL) provided limited support, the latter after media reports of an out‑of‑court settlement related to its hotel‑property dispute.
## Trading activity
Investor participation weakened markedly, with total volume falling 22.31% to 679.18 million shares and turnover dropping 26.91% to Rs 23.6 billion.
## Geopolitical backdrop
Iran announced that a shipping‑management deal with Oman for the Strait of Hormuz was only days away, a development that could further heighten regional tensions and keep oil prices elevated.
## Outlook
Analysts at Arif Habib Ltd noted that the 175,000‑point support level was breached, and the market could test the July lows around 170,000 if the current risk factors persist.