The Pakistan Stock Exchange (PSX) closed in the red on Thursday, with the KSE-100 Index shedding 495 points to settle at 175,547.

The KSE-100 Index closed at 175,547 points, down 495 points (-0.28%) day-on-day. Trading activity remained subdued, with benchmark volumes at 222 million shares. Volume leaders within the KSE-100 were PIBTL (32 million shares), CNERGY (28 million shares), and KEL (19 million shares), noted Ahmed Sheraz of KASB KTrade.

The market remained volatile as investors stayed cautious amid ongoing geopolitical uncertainty. Sector-wise, oil & gas, cement, and investment banks were the major laggards, while fertiliser and commercial banks provided support.

Individually, ENGROH, LUCK, SYS, HUBC, and PPL weighed on the index, whereas FFC, UBL, EFERT, and MEBL emerged as the key positive contributors. Sentiment was largely influenced by reports of US attacks on Iran, which lifted Brent crude close to US$93/bbl during the morning before easing back to around US$90/bbl later in the session.

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With the geopolitical situation still uncertain, elevated oil prices are likely to keep global and regional equity markets volatile. Overnight, US markets closed lower, while Asian markets traded mixed to negative, a trend mirrored by the PSX.

On the corporate front, BAFL reported a stronger-than-expected 2QCY26 result, posting an EPS of PKR 3.23, driven primarily by robust non-funded income. The bank also announced a cash dividend of PKR 1.5 per share, while deposits increased 7.5% quarter-on-quarter, providing further support to banking sector sentiment.

Looking ahead, investor focus will remain on geopolitical developments and the ongoing earnings season. While uncertainty surrounding the Middle East may continue to drive near-term volatility, better-than-expected corporate results are providing a supportive backdrop and could help stabilise market sentiment if the earnings momentum continues.