Pakistan’s equity market remained under heavy pressure as the Pakistan Stock Exchange Crash extended for another trading session, with the benchmark KSE-100 Index suffering a sharp decline amid escalating geopolitical tensions in the Middle East and a surge in global oil prices.
The latest selloff reflects growing investor concerns that prolonged regional instability could fuel inflation, increase Pakistan’s import bill, weaken the rupee, and slow the country’s economic recovery.
Pakistan Stock Exchange Crash Driven by Middle East Conflict
Investor sentiment deteriorated after renewed military developments in the Middle East raised concerns about global energy supplies.
Reports of attacks on commercial vessels in the Red Sea by Yemen’s Houthi forces, along with fresh US strikes targeting Iran, heightened fears of further disruption to oil shipments through key maritime routes.
As a result, Brent crude oil climbed close to $96 per barrel, reaching its highest level in more than six weeks.
For Pakistan, which imports a significant portion of its petroleum requirements, higher crude prices translate into increased import costs, stronger inflationary pressures, and additional strain on the country’s external account.
These concerns triggered broad-based selling across the Pakistan Stock Exchange.
KSE-100 Index Drops Nearly 2,700 Points
The benchmark KSE-100 Index closed Thursday’s session at 171,739.44 points, down 2,690.48 points, or 1.54 percent.
Trading remained highly volatile throughout the day.
The index initially climbed to an intraday high of 175,237.59 points, gaining more than 800 points before selling pressure intensified. It later touched an intraday low of 171,655.09 points, resulting in a swing of over 3,580 points during the session.
Trading volume within the KSE-100 Index reached 242.21 million shares, indicating active participation despite the negative market sentiment.
Selling Pressure Spreads Across Major Sectors
The decline was broad-based, with 91 of the 100 companies in the benchmark index ending the day in negative territory, while only nine stocks closed higher.
The biggest pressure on the index came from:
Commercial Banks
Banking stocks led the decline as investors reduced exposure to large-cap financial companies.
Cement Sector
Cement manufacturers remained under pressure amid concerns over slowing economic activity and rising production costs.
Fertilizer Companies
Fertilizer stocks also contributed significantly to the market’s losses.
Oil and Gas Exploration
Exploration companies declined despite higher international oil prices, reflecting broader market risk aversion.
Major index-heavy companies including United Bank Limited, Fauji Fertilizer Company, Engro Holdings, Lucky Cement, and Hub Power collectively erased hundreds of index points.
Refinery Stocks Buck the Trend
While most sectors ended lower, a few areas of the market managed to attract buying interest.
Refinery companies performed relatively better as investors anticipated stronger refining margins amid rising petroleum prices.
Modest gains were also recorded in selected:
Property companies
Synthetic and rayon manufacturers
Sugar producers
Textile weaving companies
However, these gains were insufficient to offset widespread selling across the broader market.
Select Stocks Post Gains Despite Weak Market
A handful of companies managed to close in positive territory despite the overall market decline.
Among the notable gainers were:
- Youwe Communications
- Cnergyico
- Air Link Communication
- Attock Refinery
- Ibrahim Fibres
Meanwhile, some of the session’s biggest losers included:
- Sui Southern Gas Company
- Pioneer Cement
- Kohinoor Textile Mills
- DG Khan Cement
- TRG Pakistan
Trading Activity Remains Strong
Despite weaker sentiment, trading volumes remained relatively healthy.
Among the most actively traded companies were:
- Cnergyico, with over 60.7 million shares
- Pakistan Refinery Limited, with more than 28.4 million shares
- TPL Properties
- Dewan Cement
- WorldCall Telecom
- The Bank of Punjab
- Karachi Electric
- Pakistan International Bulk Terminal
Broader Market Also Ends Lower
Weakness extended beyond the benchmark index.
The All-Share Index declined 1.35 percent to close at 104,259.23 points.
Overall market participation also moderated:
- Total traded volume declined to 525.12 million shares, compared with nearly 696 million shares in the previous session.
- Market turnover dropped to Rs23.43 billion, reflecting lower investor risk appetite.
Out of 493 listed companies:
- 91 stocks advanced
- 372 stocks declined
- 30 stocks remained unchanged
The market breadth highlighted the widespread nature of the selling pressure.
Investors Focus on Oil Prices and Regional Developments
Market participants are expected to closely monitor developments in the Middle East, as well as movements in international crude oil prices.
Persistently higher energy prices could increase Pakistan’s import bill, place additional pressure on inflation, influence future monetary policy decisions, and impact corporate earnings.
Since the beginning of the current fiscal year, the KSE-100 Index has already fallen by approximately 8,562 points, or 4.75 percent, underscoring the challenging environment facing Pakistan’s capital markets.
Unless geopolitical tensions ease and global oil markets stabilize, investor sentiment is likely to remain cautious, with volatility expected to persist in the weeks ahead.