PSX rebounds as KSE-100 gains over 1,500 points

KARACHI: Pakistan’s benchmark KSE-100 index rebounded sharply on Friday, gaining more than 1,500 points as investors returned to equities after several sessions of selling pressure triggered by Middle East tensions and rising oil prices.

The index was trading at 170,384 points, up 1,520 points, during the session, according to market data.

The latest Pakistan Stock Exchange market summary showed the KSE-100 at 170,586.73 points, up 1,721.69 points, or 1.01%, with 271 stocks advancing, 214 declining and 84 unchanged. The broader All Share Index gained 0.97%.

The recovery was broad-based, with the KSE-30 index rising 1.22%, the KMI-30 gaining 1.57%, the banking tradable index increasing 1.01% and the Oil & Gas Tradable Index climbing 1.75%.

Buying was visible across major sectors, although individual stocks showed mixed performance. In the oil and gas exploration sector, Mari Energies, Oil & Gas Development Company and Pakistan Petroleum gained, while Pakistan Oilfields declined.

Oil marketing stocks also showed a mixed trend, with Attock Petroleum and Pakistan State Oil advancing while Hascol Petroleum and Sui Southern Gas fell.

The rebound followed a period of heavy volatility at the exchange as investors remained concerned about escalating conflict in the Middle East and its potential impact on global oil supplies and Pakistan’s economy.

The KSE-100 fell below 172,000 on Wednesday after losing around 0.4%, extending a recent run of losses, according to Arif Habib Limited.

Market analysts said the index had been under pressure as geopolitical risks and higher crude prices weighed on investor sentiment.

The market had also suffered losses earlier in the month, with Dawn reporting on Sept 2 that stocks had declined for a second consecutive session amid economic uncertainty. The index subsequently recovered around 399 points on Sept 4, highlighting the volatility prevailing at the bourse.

The latest recovery came as oil prices retreated from recent highs on Friday, although Brent crude remained on course for a weekly gain of more than 7%. Oil prices had climbed above $100 a barrel earlier in the week as escalating Middle East tensions raised concerns about disruptions to supplies and shipping routes.

Higher oil prices remain a key risk for Pakistan’s economy because the country relies heavily on imported energy. A prolonged rise in crude prices could increase the import bill, fuel inflation and put pressure on the external account.

The International Energy Agency said on Friday that the global oil-supply gap for 2026 was expected to widen as the restoration of normal Gulf oil flows was delayed by continuing regional conflict.

Despite Friday’s recovery, the recent swings suggest that investors remain highly sensitive to developments in the Middle East and movements in international oil prices.