KARACHI: Amid persistent volatility stemming from regional and political concerns, the Pakistan Stock Exchange (PSX) faltered on Thursday after staging an early rally driven by a staff-level agreement (SLA) between Pakistan and the visiting International Monetary Fund (IMF) staff mission.

Strong buying at attractive valuations lost steam mid-session as investors tool< profits after an upsurge in oil prices revived fears of energy supply disruption amid attacl(s on oil tankers and heightened the risk of higher imported costs amid inflationary pressures.

Topline Securities Ltd said the index saw a volatile session, initially gain-ing around 906 points on positive sentiment following the signing of the SLA.

However, early gains failed to hold as investors took proñts at higher levels, and the index fell 1,138 points, or O.68 per cent, to close at 167,442.

The index traded in a wide range of 167,450-169,487 during the session.Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market opened on a positive note following a successful IMF review and the completion of the 4th Extended Fund Facility and 3rd RSF reviews, paving the way for $1.2bn in disbursements, subject to Exec utive Board approval,bringing total disbursements under the two programmes to $5.7bn.

However, the positive momentum faded as international oil prices surged nearly 4pc, amid heightened Middle East supply concerns, increased shipping attacks in the Gulf and Strait of Hormuz, and US production disrup-tions. Renewed US-Iran tensions further dampened sentiment, prompting profit-taking at higher levels and pushing the index into negative territory.

On the sectoral front, power generation increased 5.1pc year-onyear in August, while net metering`s share in totalgeneration edged up 10bps. However, netmetered units fell 27.2pc month-on-month, suggesting greater reliance on the national grid.

Index-heavy stocks remained under pressure, with United Banlc, Fauji Fertiliser, Systems Ltd, Engro Fertiliser, Pakistan Oilfield, Pakistan Petroleum, Habib Bank, Fatima Fertiliser, Engro Holdings, and Bank Alfalah emerging as the major detractors, collectively shaving approximately 601 points from the benchmark.

Investor participation weakened sharply as trading volume plunged 37.65pc to 365.86 million shares and traded value dipped 20.76pc to Rs17.6bn. K-Electric led the volume chart with 29.6m shares.

Analysts expect the mar1(et to remain volatile, as support from the IMF agreement is offset by elevated oil prices and geopolitical risks. The 167,000170,000 range remains key for the week`s final session, with attention focused on oil prices and foreign flows.