Following Wednesday’s historic rally, the Pakistan Stock Exchange (PSX) ended Thursday on a cautious note, with the benchmark KSE-100 Index falling 293.49 points, or 0.18%, to close at 165,517.51 amid renewed fears over the sustainability of a two-week Middle East ceasefire.
The market opened in the red, hitting an intraday low of 161,993.00, down 3,818 points by 09:34 am. It later recovered slightly, reaching an intraday high of 166,812.93 after 1:00 pm, before closing lower.
Selling pressure was seen across major sectors, including automobiles, chemicals, and commercial banks. Thursday’s decline comes a day after the KSE-100 posted a historic gain of 14,137.55 points, or 9.32%, closing at 165,811.01.
Investors cited uncertainty surrounding the ceasefire between Iran and the US and potential disruptions to energy flows through the Strait of Hormuz, which could impact global oil supplies.
Global markets reflected similar caution. Oil prices rose, with US crude futures up 2.8% at $96.99 per barrel and Brent crude gaining 2.1% to $96.74 per barrel.
In Asia, Japan’s Nikkei remained flat after a 5.4% gain, while South Korea’s Kospi fell 0.4% following a 6.8% rise. MSCI’s Asia-Pacific index, excluding Japan, dropped 0.3%.
US futures weakened, with S&P 500 and Nasdaq futures down 0.2%. European markets showed mixed trends: EUROSTOXX 50 futures rose 0.1%, DAX futures fell 0.3%, and FTSE futures gained 0.5%.
Market analysts are keeping a close watch on the Middle East situation, as prolonged tensions could continue to influence both local and global markets.
