The Pakistan Stock Exchange (PSX) declined sharply on Thursday, with the KSE-100 Index losing 1,138 points, or 0.68%, as rising global oil prices and geopolitical uncertainty weighed on investor sentiment.
The benchmark index closed at 167,441 points after Brent crude crossed $104 per barrel and traded near $105, gaining nearly 5% during the session. Concerns over supply disruptions linked to tensions around the Strait of Hormuz added to pressure on the market.
The decline came despite the successful completion of Pakistan’s latest International Monetary Fund (IMF) review, which cleared the way for a potential $1.2 billion tranche.
Market activity remained subdued, with 152 million shares changing hands. Commercial banks, fertiliser, oil and gas, and technology stocks were among the sectors that dragged the index lower.
UBL, FFC, SYS, EFERT and POL were among the major stocks contributing to the decline, while KEL, CNERGY, PIBTL and FCCL remained among the most actively traded stocks by volume.
Market analysts said investor sentiment is likely to remain cautious until there is greater clarity on geopolitical developments and global oil prices. A sustained decline in energy prices could provide some relief to equities.
Higher oil prices remain a key risk for Pakistan’s economy due to its reliance on imported energy and their potential impact on inflation, the external account and corporate profitability.
