Pakistan Stock Exchange remains range-bound amid geopolitical uncertainty

The Pakistan Stock Exchange (PSX) experienced range-bound and bearish activity recently, driven by geopolitical uncertainty and domestic economic developments. The benchmark KSE-100 index saw fluctuations throughout the week, closing down 0.1% week-on-week at 170,765 points. While early gains were supported by hopes for progress in US-Iran talks and softer oil prices, geopolitical concerns and rising crude prices later dampened market sentiment.

In a specific trading session, the KSE-100 lost 339.60 points (0.20%) to close at 170,425.62. Trading volume and market capitalization both saw declines during this period. Among the companies traded, Cnergyico PK led in volume, while Unilever Pakistan Foods Limited was a top gainer. Conversely, PIA Holding Company Limited saw significant declines.

On the energy front, power generation in August rose 5.1% year-on-year to 14,943 GWh, supported by increased output from hydro, coal, gas, and wind sources. However, generation costs increased by 38% year-on-year to Rs10.01/kWh due to higher fuel prices, leading distribution companies to seek fuel cost adjustments. Oil production saw a slight weekly increase, while gas production decreased.