“Investors are hesitant to take positions ahead of the weekend,” says analyst
Stocks at the Pakistan Stock Exchange (PSX) remained rangebound on Friday as surging oil prices and escalating regional tensions kept investors cautious ahead of the weekend. Uncertainty over a delayed staff-level agreement (SLA) with the IMF further dampened market sentiment.
The KSE-100 Index closed at 153,866.16 points, down 555.27 points (0.36%) from Thursday’s close of 154,421.43.
The KSE-100 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%) on Friday.
Market analysts cited oil prices and geopolitical tensions as key factors keeping investors cautious ahead of the weekend.
“Higher oil prices due to geopolitical tensions can trigger another potential fuel price hike, which will push inflation higher,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that the two-day weekend and delay in the IMF staff-level agreement (SLA) were prompting investors to adopt a wait-and-watch approach.
“People don’t want to take exposure over the weekend,” agreed independent analyst AAH Soomro.
Oil markets remained under pressure even as the United States issued a 30-day licence allowing countries to purchase Russian oil and petroleum products stranded at sea, an effort to ease supply concerns.
Brent futures for May rose 10 cents (0.1%) to $100.56 per barrel, on track for a 9% weekly gain, while WTI for April slipped 16 cents (0.2%) to $95.57, poised for a 7% weekly increase.
US Treasury Secretary Scott Bessent said the move aimed to stabilize energy markets disrupted by the US‑Israeli war on Iran, though analysts noted it did not address broader supply constraints. Both Brent and WTI surged more than 9% on Thursday, reaching their highest levels since August 2022.
Geopolitical tensions escalated after Iran’s new Supreme Leader Mojtaba Khamenei vowed to keep the Strait of Hormuz blocked, with the Iranian military warning that oil prices could reach $200 per barrel following attacks on three more ships in the Gulf.
“The statements from Iran’s Supreme Leader indicate the potential for prolonged conflict,” Soomro said.
On Thursday, the KSE-100 fell 1,437.05 points (0.92%), closing at 154,421.43, after trading between 157,080.29 and 153,503.7.
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