KARACHI: The Pakistan Stock Exchange (PSX) witnessed heavy bearish pressure on Thursday as the benchmark KSE-100 Index plunged by more than 4,700 points during intraday trading, driven by rising global oil prices, geopolitical tensions, and weakening investor sentiment.
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The KSE-100 Index fell by 4,786.92 points, or 2.89%, to 161,036.95 points compared to the previous close of 165,823.87 points, extending losses for a third consecutive session.
Market analysts said persistent selling pressure reflected investor concerns over the domestic economic outlook, corporate earnings performance, and external macroeconomic risks.
A sharp surge in global crude oil prices further intensified market volatility. Brent crude for June delivery jumped over 7% to a four-year high of $126.41 per barrel in Asian trading before partially retreating, while West Texas Intermediate (WTI) also recorded significant gains.
The spike in oil prices came amid escalating geopolitical uncertainty, including warnings from former US President Donald Trump regarding prolonged disruptions to Iranian port access and potential military escalation in the region.
Investor sentiment was further dampened by reports that UAE-based telecom giant Etisalat is reviewing its exposure to Pakistan’s telecom sector as part of a broader global portfolio adjustment strategy.
Market participants also pointed to structural economic challenges, including high borrowing costs following recent interest rate hikes, along with elevated electricity and gas tariffs, which continue to weigh on industrial activity and business expansion.
Trade and industry stakeholders have warned that rising input costs are increasing pressure on businesses, contributing to reduced investor confidence and slowing economic momentum in key sectors.
