The Pakistan Stock Exchange (PSX) experienced a negative session on Wednesday, with the benchmark KSE-100 Index closing at 181,456, down 1,114 points or 0.61%.

“Market momentum stayed muted as rising geopolitical tensions cast a long shadow over investor sentiment,” noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd. “Escalating uncertainty in the Middle East kept participants on the sidelines, prompting a cautious, wait-and-see approach and limiting risk appetite despite underlying market resilience.” 

“On the macro front, as per our estimates, the price of MS is expected to decline by Rs4.68 per litre to Rs248.49 per litre, while HSD prices are likely to fall by Rs1.85 per litre to Rs255.23 per litre, effective from January 16,” he added.

The anticipated reduction in petroleum prices is primarily driven by a contraction in spreads for both MS and HSD. On the index front, UBL, ENGROH, SYS, MCB, and EFERT emerged as major laggards, collectively dragging the index down by 623 points. 

In contrast, OGDC, PPL, ATLH, JVDC and PIOC attracted fresh buying interest, adding a combined 328 points. 

Market participation remained moderate, with traded volumes exceeding 818MN shares and market turnover of approximately PKR ~46bn. HASCOL led the volume chart, with 62.6mn shares traded. 

“Our view remains unchanged”, he said, adding the market is likely to trade sideways within the 180–187k range amid geopolitical uncertainty, with any short-term dips presenting buying opportunities on strong fundamentals.