KARACHI (MNN); The Pakistan Stock Exchange witnessed intense selling pressure on Thursday, with the benchmark KSE-100 Index plunging more than 6,000 points amid escalating geopolitical tensions and a fresh rise in global oil prices.
The market opened on a weak footing and remained under pressure for most of the trading session as investor confidence eroded steadily. Selling accelerated in the early afternoon, pushing the benchmark index to an intraday low of 181,961.14 points. A modest recovery in the final hour helped trim some losses, but the index still closed sharply lower.
At the end of trading, the KSE-100 Index settled at 182,338.12 points, down 6,042.26 points, or 3.21 percent.
Market analysts attributed the sharp decline primarily to rising tensions between the United States and Iran, coupled with higher international oil prices, which have increased uncertainty across global financial markets.
Saad Hanif, Head of Research at Ismail Iqbal Securities, said geopolitical developments and the recent surge in oil prices have strengthened expectations that interest rate cuts may be delayed, adding to market nervousness.
Meanwhile, Sana Tawfik, Head of Research at Arif Habib Limited, noted that disappointing financial results from Fauji Fertilizers Limited also weighed on investor sentiment. She said widespread selling was visible across sectors due to uncertainty linked to geopolitical risks.
Separately, several trade bodies raised concerns over the proposed IndiaāEuropean Union Free Trade Agreement, warning that it could negatively impact Pakistanās textile and hosiery exports by placing the country at a competitive disadvantage, despite its GSP+ status with the EU.
On Wednesday, the PSX had closed marginally higher, supported by selective buying in energy, power generation and banking stocks. The KSE-100 Index had gained 177.53 points, or 0.09 percent, to close at 188,380.39 points.
In international markets, Asian stocks paused after a strong run as mixed earnings from the technology sector prompted caution ahead of Appleās results. The US dollar remained under pressure, while gold and silver climbed to record highs amid increased demand for safe-haven assets.
Oil prices touched a four-month high following warnings from US President Donald Trump to Iran over its nuclear programme. Meanwhile, the US Federal Reserve kept interest rates unchanged, with Chair Jerome Powell indicating improving economic conditions but refraining from signaling near-term rate cuts.
