Stocks drift lower on geopolitical tensions

Dawn reported that the Pakistan Stock Exchange began the week lower, as higher oil costs linked to a deadlock in US-Iran negotiations over the conflict pushed up the price of energy imports. The higher energy import bill adds to inflation pressure and uncertainty about the economic outlook. Brent crude climbed beyond $106 a barrel, which raised worries about inflation and the external account.

Topline Securities said the benchmark KSE-100 closed at 170,425.62 points, a fall of 339.60 points, or 0.20 per cent, after moving between 171,126.52 and 170,120.50 during the session. Trading stayed cautious, with TRG Pakistan, OGDC, Attock Refinery and Hub Power adding roughly 265 points, while United Bank, Habib Bank and Lucky Cement subtracted about 235 points. Cnergyico PK topped the volume table with 61.5 million shares.

Ali Najib of Arif Habib said investor participation weakened, with volume down 12.78 per cent to 421 million shares and turnover down 8.02 per cent to Rs17.7 billion. He pointed to media reports that Trump rejected an Iranian ceasefire proposal, which kept market participants on the sidelines. Analysts expect volatility to continue, with selective buying possible if tensions ease and oil prices fall, while energy costs, external sector risks and the ongoing IMF review remain key factors.