PSX hit by heavy selling as KSE-100 Index plunges 3,078 points
The index opened close to Wednesday’s closing level and initially gained ground. It reached an intraday high of 171,945.83 points before selling pressure took over.
KSE-100 falls sharply
Selling pushed the KSE-100 lower during the session, with the index moving between 170,500 and 170,900 points for some time. Pressure increased further in the afternoon, especially during the final trading hour.
The index touched an intraday low of 168,471.78 points before recovering slightly. It finally closed at 168,865.04 points, down 3,078.55 points, or 1.79%.
Geopolitical tensions raise concerns
Analysts linked the decline mainly to growing geopolitical concerns and higher international oil prices. Oil prices crossed the $100-per-barrel mark after renewed attacks, raising concerns about inflation and economic stability.
“Over the last one to two days, we have seen renewed tensions on the geopolitical front, particularly between the US and Iran,” Sana Tawfik, Head of Research at Arif Habib Limited, told Business Recorder.
“The combination of heightened geopolitical tensions and rising oil prices has consequently created selling pressure in the market,” Tawfik said. The higher oil prices have added to investor concerns about the wider economic outlook.
SBP decision in focus
Investors are also watching the State Bank of Pakistan’s (SBP) upcoming monetary policy decision. The central bank is scheduled to announce its decision on Monday, with markets looking for clues about future interest rates.
Tawfik expects the SBP to keep the current policy rate unchanged. However, she said rising domestic fuel prices have increased attention on the central bank’s monetary policy.
The government has recently increased domestic fuel prices, adding another concern for investors. The SBP’s decision could therefore become an important signal for the market in the coming days.
Pakistan also said on Thursday that officials had not discussed a military response under the Makkah agreement over Houthi attacks on Saudi Arabia. However, the country said it would act when the “time comes.”
The PSX had already faced pressure during Wednesday’s session. The KSE-100 Index fell 698.56 points, or 0.40%, to close at 171,943.60 points.
Global markets also remained under pressure as investors reacted to the worsening Middle East situation. Asian stocks fell on Thursday as oil prices stayed above $100 a barrel.
Investors are also waiting for key US inflation data. The figures could influence expectations about the future direction of US monetary policy.
The sharp PSX decline shows how quickly geopolitical tensions can affect investor confidence. Higher oil prices are another major concern because they can increase inflation and pressure the economy.
The upcoming SBP policy decision may give investors a clearer direction. Until then, market sentiment is likely to remain sensitive to developments in the Middle East and global oil prices.
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