KSE-100 falls 1,332 points as oil prices and inflation weigh

The Pakistan Stock Exchange reversed its early gains on Thursday, with the benchmark KSE-100 Index falling 1,332.47 points, or 0.78%, to close at 168,636.85. The index touched an intraday high of 170,688.38 and a low of 168,567.79. It had opened positively, reaching 170,270.16, up 300.84 points or 0.18%, at 10:15am before losing ground through the session.

Oil prices rose around 2% during the session after China suspended oil product exports, tightening global fuel markets that were already facing supply constraints. Investors also continued to assess diplomatic efforts to end the US-Iran war, which the report identified as an additional source of caution.

On the domestic front, Pakistan's inflation slowed to 10.26% in September from 11.1% in August, primarily led by food prices, but remained above the State Bank's medium-term target range.

Muhammad Awais Ashraf of AKD Securities assessed that easing inflationary pressures amid a strong external account position, along with a reduction in domestic political noise, would strengthen investor confidence. He said any positive development on the US-Iran war would serve as a key positive trigger, while normalisation of trade flows from the GCC would reduce the severity of the ongoing crisis. Ashraf wrote that the firm advised investors to remain in banks, exploration and production, fertiliser, textile, OMCs, technology, steel and automobile sectors, adding that within these, E&Ps and OMCs were positioned to benefit from resolution of gas sector circular debt.

Cumulative trading volume stood at 548.3 million shares, down from 591.2 million on Wednesday. In the ready market, 121 companies advanced, 323 declined and 48 remained unchanged. Kohinoor Spining was the volume leader with trading in 93.8 million shares, rising Rs0.11 to close at Rs5.84.