Pakistan Stock Exchange (PSX) fell sharply on Thursday as renewed geopolitical tensions, a spike in global oil prices and profit-taking outweighed positive developments in the refinery sector.

The benchmark KSE-100 index declined 1,733.57 points, or 1.01%, to settle at 170,498.95, reversing the previous session’s gains. The market remained under pressure as Brent crude moved above $100 per barrel, raising concerns over inflation, the external account and broader macroeconomic stability.

Arif Habib Limited (AHL), in its report, noted a broad-based decline that kept the KSE-100 inside its July low consolidation zone, with 11 shares rising and 87 falling. Engro Fertilisers, HBL and Ghandhara Automobiles were the main positive contributors while UBL, Lucky Cement and Mari Energies dragged the index most.

The report also mentioned Geely’s planned entry into Pakistan with three SUVs via Bestway Automotive and separate plant upgrade agreements signed by Attock Refinery and Cnergyico with Inter State Gas Systems. The KSE-100 closed down by 1,733.6 points (-1.01%), remaining under pressure while keeping in view the July lows and the September 11 low near 166,100.

Topline Securities, in its market review, observed that the KSE-100 closed at 170,499, down 1,734 points, after trading between the intra-day high of 172,491 and the low of 170,418. The market witnessed a pronounced reversal from early gains as profit-taking intensified in the latter half of the session, exerting considerable pressure on the benchmark index.

Following three consecutive sessions of gains, investors moved to lock in profits, resulting in a broad-based retreat that erased a substantial portion of the market’s recent advances, as per Topline. Market sentiment remained fragile and risk-averse, amid heightened geopolitical tensions in the Middle East and renewed concerns over elevated global crude prices, with Brent crude trading above the $100 per barrel threshold.

Trading activity was moderate as total volumes reached 760 million shares, while traded value stood at Rs27.5 billion, it added.

Commenting on the market’s performance, KTrade noted that Brent crude moved towards $107 a barrel on the back of geopolitical tensions, keeping macroeconomic concerns elevated. That reversed Wednesday’s 830-point advance, which had been supported by hopes around US-Iran talks and the arrival of an International Monetary Fund (IMF) mission.

A genuine structural positive did not save the session. National Refinery, Attock Refinery and Cnergyico signed upgrade agreements with Inter State Gas Systems under the amended brownfield refinery policy – part of a roughly $6 billion modernisation push aimed at producing Euro-V fuels and lower import dependence. Refinery stocks still closed lower with the broader market, KTrade said.

Overall trading volumes were recorded at 759.97 million shares compared with the previous session’s tally of 773.59 million. The value of shares traded during the day was Rs27.54 billion.

In the ready market, shares of 495 companies were traded. Of these, 101 stocks closed higher, 358 fell and 36 remained unchanged.

Cnergyico Pk was the volume leader with trading in 158 million shares, losing Rs0.84 to close at Rs13.47. It was followed by K-Electric with 72 million shares, losing Rs0.48 to close at Rs6.05 and First National Equities with 60 million shares, losing Rs0.07 to close at Rs1.12.

Foreign investors bought shares worth Rs17.7 million, the National Clearing Company reported.