PSX sinks 2,830 points on oil, geopolitics

Investor sentiment takes a hit, leading to broad-based selling

KARACHI:

The Pakistan Stock Exchange (PSX) plunged on Thursday, with the benchmark KSE-100 index tumbling 2,830 points, as escalating Middle East tensions and a sharp spike in global oil prices triggered broad-based selling and dampened investor sentiment.

At the close of trading, the KSE-100 index posted a sharp decline of 2,829.70 points, or 1.71%, and settled at 162,994.17.

Nawaz Ali of JS Global noted that the PSX witnessed sustained selling pressure driven by escalating geopolitical concerns and rising international crude oil prices. Investor risk appetite weakened further as market participants chose to reduce exposure ahead of the extended weekend.

The KSE-100 index traded in negative territory throughout the session, hitting an intra-day low of 160,391 (down 5,432 points). Although value-hunting at depressed levels triggered a partial recovery, the index still closed significantly lower at 162,994, down 2,830 points. Near-term market direction will largely hinge on geopolitical developments in the Middle East, particularly their impact on global oil prices and investor confidence.

Ahmed Sheraz at KASB KTrade highlighted that the KSE-100 closed down 2,830 points, as broad-based selling pressure dominated the session amid weak global cues and rising oil concerns. Volumes remained moderate at 366 million shares, reflecting cautious participation with a clear sell-side tilt. Pressure was led by banks, E&P firms, and cement companies, with heavyweights including UBL, PPL, FFC, NBP, Engro Holdings, and Lucky Cement among key laggards.

Sentiment remained fragile as international oil markets spiked, with Brent touching $126/barrel and WTI crossing $110/barrel, intensifying inflationary concerns and keeping risk appetite subdued, he said. Additional pressure stemmed from weak overnight performance in US and Asian equities, offering no supportive trigger for local markets.

A brief intra-day recovery was observed in the latter half as oil prices cooled (Brent easing towards $117), though this appears more of a knee-jerk rebound rather than a trend reversal. Going forward, market direction remains tied to geopolitical developments, particularly the evolving US-Iran situation and trajectory of global oil prices. Near-term outlook stays cautious, with volatility expected to persist until clarity emerges, according to KTrade.

Overall trading volume was recorded at 837.37 million shares compared with the previous session's tally of 1.08 billion. The value of shares traded during the day was Rs36.35 billion.

Shares of 485 companies were traded. Of these, 101 stocks closed higher, 348 fell, and 36 remained unchanged.