The bourse swung between gains and losses on Friday as investors stayed cautious ahead of the weekend, with elevated oil prices, worsening regional tensions and uncertainty over a delayed staff-level agreement (SLA) with the International Monetary Fund (IMF) weighing on sentiment.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 153,866.16 points, down 555.27 points, or 0.36%, from the previous close of 154,421.43.
The index traded between a high of 155,002.1, up 580.67 points, or 0.38%, and a low of 152,780.79, down 1,640.64 points, or 1.06%.
“Oil prices, due to geopolitical tensions, are the prevalent reasons. Higher oil prices can cause another potential price hike in fuel prices, which will push inflation,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“This, along with a 2-day break, is causing investors to wait and watch the developments over the weekend before taking any fresh positions. Delay in the SLA is also causing nervousness,” he added.
“People don’t want to take exposure over the weekend,” echoed AAH Soomro, an independent investment and economic analyst.
Oil prices headed for weekly gains even after the United States issued a 30-day licence allowing countries to buy Russian oil and petroleum products stranded at sea in an attempt to ease supply concerns.
Brent futures for May rose 10 cents, or 0.1%, to $100.56 a barrel by 0400 GMT, on track for about a 9% weekly increase, while WTI for April slipped 16 cents, or 0.2%, to $95.57 but was still poised for a 7% weekly gain.
US Treasury Secretary Scott Bessent said the move was aimed at stabilising energy markets roiled by the US-Israeli war on Iran, though analysts said it had not resolved broader supply constraints.
Both benchmarks surged more than 9% on Thursday to their highest levels since August 2022.
Iran’s new supreme leader, Mojtaba Khamenei, said on Wednesday that Iran would fight on and keep the Strait of Hormuz shut as leverage against the United States and Israel. Iran’s military command said oil could hit $200 a barrel, as three more ships were attacked in the blockaded Gulf.
"The recent statement of the new leader [Iran's Supreme Leader Mojtaba Khamenei] shows signs of prolonged conflict," said AAH Soomro.
In the previous session, the KSE-100 fell 1,437.05 points, or 0.92%, to close at 154,421.43 after trading between 157,080.29 and 153,503.7.
