PSX came under pressure on Thursday as the benchmark KSE-100 index fell 1,332.47 points, or 0.78%. The index closed at 168,636.85, returning to levels seen before the Middle East conflict began.

KSE-100 falls after early gains

The market opened higher on Thursday. The index briefly crossed the 170,000 mark.

However, the early gains did not last. Investors began taking profits later in the session. Broad-based selling then pushed the index lower.

Topline Securities Ltd said elevated oil prices continued to concern investors. Geopolitical uncertainty also weighed on market sentiment.

Higher energy costs have increased concerns about economic stability. They have also raised the cost of doing business.

Major stocks drag the index

Pakistan Petroleum, United Bank, Hub Power, Oil and Gas Development Company and Fauji Fertiliser led the decline.

Together, the five stocks dragged the index down by about 470 points.

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Selling affected several major sectors. Banks, exploration and production companies, cement makers and oil marketing companies all faced pressure.

The broad selling showed that investors remained cautious.

Trading activity remains weak

Market activity also slowed during the session.

Trading volume fell 7.24% to 548.4 million shares. The value of traded shares dropped 15.54% to Rs17.05 billion.

Arif Habib Ltd reported a sharply negative market breadth. Only 14 stocks gained, while 86 stocks closed lower.

Kohinoor Textile Mills led the positive contributors. Service Industries and Attock Refinery also supported the index.

The three stocks gained 1.02%, 0.26% and 0.21%, respectively.

Inflation adds to economic concerns

The market decline came alongside fresh inflation data.

Headline inflation reached 10.3% year-on-year in September. It stood at 5.8% during the same month last year.

Average inflation for the first quarter of fiscal year 2027 also increased. It reached 10.21%, compared with 4.30% a year earlier.

The latest figures have added to concerns about economic pressures facing businesses and consumers.

LNG shipments face Strait of Hormuz concerns

The government is also discussing the safe passage of two October shipments of Qatari liquefied natural gas.

Officials are holding discussions with their Iranian counterparts over the shipments. The vessels need to pass through the Strait of Hormuz.

Developments around the key shipping route remain important for Pakistan’s energy supply.

166,000 level in focus

Arif Habib Ltd said investor sentiment had turned cautious.

The brokerage expects the market to remain under pressure based on its latest assessment. It identified 166,000 as a key level to watch for the KSE-100 index.