KSE-100 Index falls nearly 370 points as regional tensions, higher oil prices and cautious trading weigh on the market.
KARACHI: The Pakistan Stock Exchange (PSX) extended its losing streak on Thursday as escalating geopolitical tensions and cautious investor sentiment kept pressure on equities, dragging the benchmark KSE-100 Index down by nearly 370 points.
According to analysts at Topline Securities Limited, the market remained under sustained selling pressure throughout the trading session, although selective buying in value stocks helped the benchmark recover from its intraday lows before the close.
The KSE-100 Index opened on a weak footing and came under aggressive selling, touching an intraday low of 179,411.35 points. It later recouped part of the losses to close at 181,259.67 points, down 369.69 points, or 0.20 per cent, compared with the previous session.
Geopolitical concerns weigh on market
Market analysts attributed the subdued performance to rising regional geopolitical tensions, elevated international crude oil prices and continued uncertainty across global financial markets.
The combination of external risks prompted investors to adopt a defensive strategy, with many opting to lock in profits and reduce exposure to equities.
Although bargain hunting emerged in selected value stocks during the latter part of the session, it proved insufficient to offset the broader weakness across the market.
Banking and energy stocks lead decline
Heavyweight banking and energy shares were among the largest contributors to the market’s decline.
According to Topline Securities, Meezan Bank (MEBL), MCB Bank (MCB), Pakistan Petroleum Limited (PPL), Engro Holdings (ENGROH) and Askari Bank (AKBL) collectively erased around 521 points from the benchmark index, accounting for the bulk of the day’s losses.
Investors remain cautious
Market participants are expected to remain cautious in the coming sessions as they closely monitor regional geopolitical developments, movements in international oil prices and trends in global equity markets.
Analysts believe external factors are likely to remain the key drivers of investor sentiment in the near term, while any easing in geopolitical uncertainty could help improve market confidence and encourage renewed buying interest.