KARACHI, October 22, 2026: The Pakistan Stock Exchange (PSX) fell below the 164,000-point mark on Thursday as rising geopolitical tensions in the Middle East and higher international oil prices weighed on investor sentiment.

The benchmark KSE-100 Index dropped 2,007 points, or 1.21%, to close at 163,924.32. Investors remained cautious amid concerns that a wider regional conflict could disrupt energy supplies and increase Pakistan’s import costs.

International oil prices surged following fresh Houthi attacks in Saudi Arabia. The developments raised fears of prolonged disruptions to Middle Eastern energy supplies, putting pressure on Pakistan’s external account.

Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL), said geopolitical uncertainty and rising oil prices had unsettled the market. He noted that a higher energy import bill could add to pressure on the country’s external account.

Banking Earnings Offer Some Support

Despite the market decline, major banks reported their nine-month calendar year 2026 (9MCY26) results.

Habib Bank Limited (HBL) posted earnings per share (EPS) of Rs36.84, up 5% year-on-year. Meezan Bank Limited (MEBL) reported EPS of Rs41.02, marking a 6% increase, while MCB Bank Limited recorded EPS of Rs37.26, unchanged from a year earlier.

According to the market report, the banks’ earnings and dividend payouts were in line with AHL expectations.

However, positive corporate results failed to offset the broader pressure from geopolitical concerns and higher oil prices.

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Major Stocks Drag KSE-100 Lower

Several heavyweight stocks contributed to Thursday’s decline. ENGROH, UBL, HUBC, HBL, PTC, LUCK, FFC, ATRL, NBP and PPL were the main laggards.

Together, these stocks pulled the benchmark index down by 1,151 points, accounting for a substantial share of its overall loss.

Trading activity strengthened during the session. A total of 364.3 million shares changed hands, while turnover reached Rs17.9 billion.

Pakistan Refinery Limited (PRL) led trading volumes, with 25.8 million shares traded.

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Oil Prices and Regional Developments in Focus

Market participants are likely to monitor developments in the Middle East closely. Further escalation could keep international oil prices elevated and increase concerns about Pakistan’s energy import bill and external financing pressures.

Nevertheless, ongoing corporate earnings and attractive dividend payouts may provide selective support to equities. Investors will also assess whether the latest banking results can help sustain interest in fundamentally strong stocks.

For now, geopolitical developments and oil price movements are expected to remain key drivers of market direction, with volatility likely to persist.