PSX slides over 1,500 points as geopolitical tensions rattle investors

KSE-100 settles at 162,374.88 points with banking, energy, and other sectors contributing to the decline

KARACHI:

The Pakistan Stock Exchange (PSX) extended its losses on Friday, with the benchmark KSE-100 Index falling 1,550 points to close at 162,375, as escalating geopolitical tensions, rising international oil prices and cautious investor sentiment weighed on the market.

The benchmark shed 4,045 points, or 2.47%, during the week, while investors also squared positions ahead of the weekend.

PSX witnessed another negative trading day, with the benchmark KSE-100 Index declining 1,550 points (-0.95% DoD) to close at 162,375.

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The market remained volatile, trading in both directions amid cautious investor sentiment driven by persistent geopolitical uncertainty and position-squaring ahead of the weekend, noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd.

The index staged a brief recovery, reaching an intraday high of 163,987 (+43 points; +0.03%), before renewed selling pressure pushed it lower, resulting in a close below the 163,000 level.

On the index contribution front, MEBL, ENGROH, LUCK, HUBC, PPL, MCB, SYS, NBP, OGDC and HBL were the major laggards, collectively eroding 985 points from the benchmark.

Market activity remained subdued, with 384 million shares traded and total turnover reaching Rs18 billion. PASL led volumes, with 32.6m shares changing hands.

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The KSE-100 Index ended the week on a negative note, declining 4,045 points (-2.47% WoW) to close at 162,375. During the week, the index traded between an intra-week high of 166,698 and a low of 162,292, as investor sentiment remained subdued throughout the week amid escalating geopolitical tensions and rising international oil prices, which heightened concerns over energy supply disruptions and the country’s external account.

Going forward, the market is likely to remain volatile at 160-168k amid cautious investor sentiment, evolving macroeconomic conditions, especially the MPC announcement on Monday, where the street is expecting an increase of 50bps in the benchmark interest rates, and geopolitical developments.