The Pakistan Stock Exchange faced a significant downturn as the KSE-100 index dropped nearly 2.89% due to economic concerns.
The Pakistan Stock Exchange (PSX) experienced a sharp decline on Thursday, with the KSE-100 index falling by 4,786.92 points, or 2.89%, to close at 161,036.95 points. This decrease followed a previous close of 165,823.87 points. [source]
The market has been under selling pressure for three consecutive sessions, fueled by investor concerns over the economic outlook and disappointing corporate earnings. Rising global oil prices and geopolitical tensions have further contributed to investor caution. [source]
Oil prices surged more than 7% to a four-year high, with Brent crude reaching $126.41 per barrel and West Texas Intermediate climbing to $110.31. These increases were driven by geopolitical tensions, including a warning from Donald Trump about a prolonged US blockade of Iranian ports. [source]
Additionally, reports that UAE-based telecom company Etisalat is reviewing its exposure to Pakistan’s telecom sector have added to the bearish market sentiment. This review is part of Etisalat’s broader portfolio optimization strategy. [source]
Trade and industry leaders have expressed concerns over the high cost of doing business in Pakistan. They point to expensive bank borrowing due to interest rate hikes and elevated electricity and gas tariffs as factors impacting economic activity. [source]
"Rising global oil prices and geopolitical tensions have also contributed to investor caution."
Sources
- https://www.dawn.com/news/1996348/psx-plunges-over-4700-points-as-bears-maintain-control — Details on the PSX decline, contributing factors, and market reactions.