Middle East tensions and higher global oil prices trigger broad-based selling at Pakistan Stock Exchange
KARACHI: The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) fell sharply on Wednesday, shedding 1,690 points as renewed tensions in the Middle East pushed global oil prices higher and weighed on investor sentiment.
According to Topline Securities Limited, the KSE-100 Index closed at 174,776 points, down 1,690 points, or 0.96 per cent, from the previous session.
The index traded between an intraday high of 175,841 points and a low of 174,562 points during the session.
Geopolitical tensions weigh on PSX
The market remained under pressure throughout the trading session as renewed geopolitical tensions between the United States and Iran raised concerns among investors.
The sharp increase in international oil prices added to market uncertainty, prompting cautious trading across the broader market.
Analysts said the combination of geopolitical risks and higher energy prices weighed on investor sentiment and contributed to the broad-based decline in equities.
The development also increased concerns over the potential impact of higher energy costs on Pakistan’s external account, inflation outlook and corporate profitability, keeping investors cautious.
Major stocks drag KSE-100 lower
Several heavyweight stocks were among the biggest contributors to the index decline.
MEBL, UBL, PPL, FFC and LUCK collectively dragged the KSE-100 Index down by around 604 points, according to Topline Securities.
Some stocks provided support and limited the market’s losses. EFERT, THALL and AKBL collectively contributed around 139 points to the index.
Despite the sharp decline in the benchmark index, trading activity remained strong.
Total market volume reached approximately 610 million shares, while traded value stood at around Rs31.8 billion.
The session reflected heightened sensitivity among investors to developments in global energy markets and geopolitical tensions.
Market participants are likely to continue monitoring international oil prices and developments in the Middle East, as further changes in energy costs could influence investor sentiment and the direction of Pakistan’s equity market.