Karachi, Pakistan – Web Desk: The Pakistan Stock Exchange (PSX) opened sharply lower on Thursday as surging global oil prices rattled investor sentiment, with the benchmark KSE-100 index shedding over 3,000 points in early trading.
The KSE-100 index declined 3,024.82 points, or 1.82 percent, to 162,799.05. The session saw a high of 164,357.47 and a low of 162,337.00, with a total trading volume of 53.66 million shares. The previous close stood at 165,823.87.
The sell-off comes as oil prices extended gains for a ninth consecutive session on concerns that supply from the key Middle East producing region will remain constrained for longer, as talks to end the US-Israeli war against Iran have reached a deadlock.
Brent crude futures for June rose $1.91, or 1.62 percent, to $119.94 per barrel, after gaining 6.1 percent in the previous session. The June contract, which has increased for nine straight days, expires on Thursday. The more active July contract traded at $111.38, up 94 cents, or 0.85 percent.
US West Texas Intermediate (WTI) futures for June were up 63 cents, or 0.59 percent, at $107.51 per barrel, after climbing 7 percent in the previous session — rising in eight of the last nine sessions.
Investors fear that persistently high oil prices will widen Pakistan’s current account deficit, fuel inflation, and put pressure on the rupee. Pakistan is a net oil importer and remains highly vulnerable to energy price shocks.
Market analysts expect continued volatility in the coming sessions as traders monitor diplomatic developments in the Middle East and any potential breakthrough in Iran-US ceasefire talks.
