PSX plunges over 3,000 points as oil surge sparks panic selling

KSE-100 slumps 1.8% after Brent hits $103; benchmark closes at 168,865

KARACHI:

The Pakistan Stock Exchange (PSX) closed sharply lower on Thursday as panic selling gripped the market amid a surge in international oil prices and heightened geopolitical uncertainty.

KSE-100 Index closed at 168,865 points, down 3,078 points or 1.8% DoD, after falling more than 2% intraday, as per KTrade. The session remained highly bearish, with panic selling dominating sentiment amid concerns over international oil prices. Brent crude surged to around USD 103/bbl, its highest level since May, raising fresh concerns over inflation, the external account and overall macroeconomic stability. 

Trading activity remained elevated, with around 261mn shares traded, led by CYNERGY, KEL and PIBTL. Selling pressure was broad-based as investors continued to reduce risk amid heightened geopolitical uncertainty and rising oil prices.

Read: PSX loses 699 points over spreading ME war

The market has now remained under pressure for nearly three weeks, reflecting persistent risk-off sentiment. Going forward, volatility is likely to remain elevated, and the market may stay headline-driven.

Unless oil prices and geopolitical concerns ease, selling pressure and cautious investor positioning are expected to persist, keeping the near-term outlook weak.