Selling pressure engulfs PSX as fuel price hike, geopolitical tensions weigh on sentiment

Selling pressure continued to weigh on the Pakistan Stock Exchange on Friday, with the benchmark KSE-100 Index falling by over 1,600 points amid a hike in domestic fuel prices and rising geopolitical tensions.

According to the PSX website, the market opened on a bearish note, and the benchmark index plunged to as low as 148,796.54, shedding 3,150 points as of 09:15 am. Later, the index recovered some losses and settled at 150,398.71, down by 1612.55 or 1.06% from the previous close. 

Selling was observed across major sectors, including automobile assemblers, cement, commercial banks and fertiliser. Index-heavy stocks such as LUCK, HBL, MCB, MEBL, NBP, ENGRO and FFC traded lower.

Market participants attributed the decline to a combination of external pressures and domestic developments. Analysts said investor sentiment remains affected by rising fuel costs and ongoing geopolitical uncertainty.

A brokerage note said the pace of decline had slowed compared to the previous session, but continued pressure reflected the impact of recent developments.

On Thursday, the KSE-100 Index had closed at 152,011.26 points, down 3,500.30 points or 2.25%, following broad-based selling triggered by negative global cues.

Petrol and high-speed diesel prices in Pakistan rose sharply on Thursday, reflecting global oil market pressures and limited fiscal space under the International Monetary Fund programme. Petrol increased by Rs137 per litre to Rs458.4, up 43%, while diesel rose by Rs185 per litre to Rs520.35, a 55% increase.

On the economic front, Pakistan’s trade deficit increased by 22.65% to $27.81 billion in the first nine months of FY26, compared to $22.67 billion in the same period last year, according to data released by the Pakistan Bureau of Statistics.

The trade deficit for March 2026 was recorded at $2.73 billion, up 3.71% year-on-year from $2.63 billion. However, on a month-on-month basis, the deficit narrowed by 9.36% compared to $3.01 billion in February 2026.