Oil price spike and rising US-Iran tensions trigger sharp swings in Pakistan’s stock market as investors remain cautious.
KARACHI: Pakistan’s stock market closed a volatile trading week deep in the red as rising global oil prices and mounting geopolitical tensions in the Gulf rattled investor confidence.
The benchmark KSE-100 index at the Pakistan Stock Exchange ended the week at 153,866 points, down 3,630 points or 2.3% week-on-week, reflecting persistent pressure from global energy markets and regional uncertainty.
The week began with a dramatic sell-off on Monday when the index plunged 11,016 points (-6.99%) to 146,480, marking the second-largest single-day point decline in the exchange’s history. The market quickly staged a historic rebound on Tuesday, gaining 9,697 points (+6.62%) to close at 156,177, the second-highest daily point gain ever recorded.
Trading turned mixed in the following sessions. The index slipped 319 points (-0.20%) on Wednesday and fell another 1,437 points (-0.92%) on Thursday before closing the week 555 points lower (-0.36%) on Friday.
According to Arif Habib Limited (AHL), Monday’s sharp decline was largely triggered by a surge in crude oil prices amid escalating US-Iran tensions, though the market partially recovered later in the week.
On the macroeconomic front, the State Bank of Pakistan (SBP) kept its policy rate unchanged at 10.5%, citing uncertainty from Middle East conflicts and volatile commodity prices.
Meanwhile, petroleum sales rose 13% year-on-year to 1.28 million tons in February, driven by strong demand for motor spirit and high-speed diesel, although sales dropped 15% month-on-month due to Ramadan-related slowdown.
Analysts say geopolitical uncertainty continues to cloud the outlook, with the KSE-100 now nearly 19% below its January 2026 peak of 189,167, as investors await clarity on global energy prices and economic developments.
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