Bearish bias persists amid geopolitical tensions

The Pakistan Stock Exchange closed lower on Thursday, with the benchmark KSE-100 index shedding 1,332.47 points, or 0.78 per cent, to end at 168,636.85. Dawn reported that the index had briefly risen above the 170,000 level early in the session, but the gain did not hold as profit-taking and broad selling intensified later. The decline pulled the index back to levels seen before the Middle East conflict, which the report linked to weakening investor confidence.

Pakistan Petroleum, United Bank, Hub Power, Oil and Gas Development Company and Fauji Fertiliser were the main drags, together erasing about 470 points. Volume slipped 7.24pc to 548.4 million shares, while turnover contracted 15.54pc to Rs17.05 billion. Arif Habib Ltd reported that only 14 shares advanced while 86 declined, leaving breadth clearly on the negative side. Kohinoor Textile Mills, Service Industries and Attock Refinery were the biggest positive contributors to the index.

The drop also came alongside new inflation figures showing headline inflation for September at 10.3pc year-on-year, versus 5.8pc in September 2025. Inflation averaged 10.21pc over the first quarter of FY27, up from 4.30pc a year earlier. Separately, the government is negotiating with Iranian counterparts so that two October cargoes of Qatari liquefied natural gas can pass safely through the Strait of Hormuz.