Despite higher oil prices and the deteriorating security situation in the Gulf, the PSX has remained relatively stable over the past few days. A key factor supporting the market has been the emergence of sustained foreign buying, which has helped offset the broader weakness in sentiment.
Another important source of stability has been the absence of any significant positional overhang, reducing the risk of forced selling. Individuals have continued to accumulate stocks on dips, providing support at lower levels, while mutual funds have remained under redemption pressure, limiting their ability to deploy fresh capital.
As the earnings season gathers pace, market direction is likely to be increasingly driven by corporate financial results and dividend announcements. At the same time, developments in the Gulf—and their impact on oil prices and investor sentiment—will remain key external factors influencing the market.
