Benchmark index closes below 175,000 amid broad-based selling and concerns over rising global oil prices
KARACHI: The Pakistan Stock Exchange (PSX) extended its losses on Wednesday as the KSE-100 Index fell by 1,704 points, with investors adopting a risk-off strategy amid escalating geopolitical tensions in the Middle East and persistent concerns over rising international oil prices.
The benchmark KSE-100 Index settled at 174,429 points, down 1,704 points, or 0.97%, as broad-based selling pressure weighed on equities throughout the trading session.
Middle East tensions weigh on investor confidence
Investor sentiment remained fragile as heightened geopolitical tensions continued to fuel uncertainty over global energy supplies and inflation, overshadowing positive cues from international equity markets.
The sustained rise in crude oil prices also intensified concerns over Pakistan’s external account, inflation outlook and import bill, prompting investors to reduce exposure to cyclical sectors and heavyweight index stocks.
Market participants largely remained cautious, preferring to stay on the sidelines until there is greater clarity on developments in the Middle East and their potential impact on global financial markets.
Heavyweight stocks lead market decline
The benchmark index came under pressure from losses in several blue-chip stocks.
Among the largest negative contributors were United Bank Limited (UBL), Fauji Fertilizer Company (FFC), Engro Holdings (ENGROH), Hub Power Company (HUBC) and Lucky Cement (LUCK).
Collectively, these heavyweight stocks erased approximately 776 points from the KSE-100 Index, accounting for a substantial share of the day’s decline.
Trading activity remains healthy
Despite the weak market performance, trading activity remained relatively robust.
Investors traded 695.6 million shares during the session, while the total traded value reached approximately Rs25.4 billion, reflecting continued market participation despite heightened volatility.
Market outlook
Analysts expect the KSE-100 Index to remain sensitive to developments in the Middle East, fluctuations in international crude oil prices and upcoming domestic macroeconomic indicators.
Unless geopolitical tensions ease and oil prices stabilise, investors are likely to maintain a cautious stance, with market volatility expected to persist in the near term.