KARACHI:

Pakistan’s stocks on Friday came under pressure as renewed geopolitical tensions between the US and Iran near the Strait of Hormuz triggered a bearish session on the Pakistan Stock Exchange (PSX).

The benchmark KSE-100 index declined nearly 1,780 points to close at 171,116, erasing some of the week’s gains amid fears that escalating clashes could derail the fragile ceasefire and peace negotiations.

“The market witnessed a dull yet typical Friday profit-taking session after the strong rally seen in recent days,” said Ahmed Sheraz of KTrade Securities.

On the external front, crude oil continued hovering around $99-101 per barrel as investors closely monitored developments surrounding the Strait of Hormuz and ongoing US-Iran negotiations. Sentiment stayed cautious after renewed skirmishes overnight between the US and Iran near Hormuz, while weak US and Asian equity markets further weighed on local risk appetite, he said.

“The stock market witnessed a bearish session as tensions escalated overnight between the US and Iran near the Strait of Hormuz, raising concerns over stability of the fragile ceasefire and prospects of a lasting peace agreement,” stated Topline in its market review.

Amid the heightened geopolitical uncertainty, the KSE-100 index fell 1.03% to close at 171,116 points. The top negative contribution to the index came from UBL, Engro Holdings, Meezan Bank, Pakistan Petroleum, Mari Energies and OGDC, as they contributed 834 points.

Traded value-wise, Maple Leaf Cement ($6.3 million), OGDC ($5.9 million), DG Khan Cement ($4.8 million), K-Electric ($4.2 million) and PPL ($4.1 million) dominated the activity. Traded volume and value for the day stood at 1 billion shares and Rs36.7 billion, respectively, Topline said.

Arif Habib Limited (AHL) noted that the PSX experienced a profit-taking session. The KSE-100 declined by 1,778.46 points to close at 171,115.82. Despite the dip, the index maintained a positive week-on-week (WoW) return of +4.98%.

Market breadth favoured bears, with 73 shares falling compared to only 27 gainers. Major index drags included UBL (-1.54%), Engro Holdings (-1.97%), and Meezan Bank (-1.82%).

Investor sentiment was notably impacted by geopolitical tensions as US forces targeted missile and drone launch sites in Iran near the Strait of Hormuz. These clashes risk undermining negotiations on a US-proposed deal to end the conflict, with Iran expected to respond to the proposal in the coming days.

Next week, technical support is anticipated between 167k and 170.5k, while 175k remains the primary upside target for the index, said AHL.

In terms of individual stock performance, Gadoon Textile Mills led the top gainers with an 8.50% increase, while K-Electric saw significant trading with 144.4 million shares changing hands.