Pakistan Stock Exchange falls as oil prices surge

The Pakistan Stock Exchange (PSX) experienced significant volatility, with the KSE-100 Index dropping by 1,138 points (0.68%) to close at 167,441 points on Thursday. This sharp decline followed a previous session where the index had gained 120.30 points to close at 168,580.41.

The downturn was driven by rising global oil prices, with Brent crude exceeding $104 per barrel, and geopolitical uncertainties surrounding the Strait of Hormuz. These factors weighed on investor sentiment, particularly impacting the commercial bank, fertilizer, oil and gas, and technology sectors. Major contributors to the decline included UBL, FFC, SYS, EFERT, and POL.

Despite the market pressure, Pakistan recently completed an International Monetary Fund (IMF) review, which facilitates a potential $1.2 billion tranche. Analysts suggest market caution will persist until there is more clarity regarding global energy prices and geopolitical developments.