The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Thursday, with the benchmark KSE-100 Index falling more than 1,100 points as investors remained cautious over Pakistan’s ongoing IMF review and uncertainty surrounding developments in the Middle East.
The KSE-100 opened on a weak note and quickly turned volatile. The index touched an intraday low of 170,818.01, down 1,414.5 points from the previous close. By 2:35 pm, the benchmark was trading at 171,091.17, down 1,141.34 points, or 0.66%, from Wednesday’s close of 172,232.51.
Selling pressure was seen across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies and oil marketing companies. Refinery stocks also declined despite progress on long-awaited upgrade agreements.
Cnergyico Pakistan Limited, National Refinery Limited and Attock Refinery Limited have signed agreements with the government to upgrade their facilities under the brownfield refinery policy.
Investors were also monitoring Pakistan’s engagement with the International Monetary Fund as an IMF mission began discussions with Pakistani authorities for the fourth review under the $7 billion Extended Fund Facility and the Resilience and Sustainability Facility.
Prime Minister Shehbaz Sharif also met IMF Managing Director Kristalina Georgieva on the sidelines of the United Nations General Assembly. According to the Prime Minister’s Office, the two sides discussed Pakistan’s reform programme.
The latest decline came after the KSE-100 gained 830.43 points, or 0.48%, on Wednesday to close at 172,232.51.
Global markets also remained cautious amid Middle East tensions and uncertainty over diplomatic talks. Oil prices rose more than 2% on Thursday, with Brent crude reaching $105.40 per barrel and West Texas Intermediate trading at $93.94 per barrel.
