PSX Falls 825 Points as IMF Talks, Gulf Tensions Weigh on Investors
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange ended Tuesday’s session under selling pressure, with the benchmark KSE-100 Index falling 825.22 points, or 0.49%, to close at 169,600.40, as investors weighed ongoing IMF negotiations and continued uncertainty in the Middle East.
The market initially opened on a positive note. Official PSX data showed the KSE-100 at 170,706.08 around 10:01am, up 280.46 points from the previous close of 170,425.62. The index had reached 170,944.34 during the early session before sentiment weakened later in the day.
Selling intensified during the final hours of trading and spread across several heavyweight sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies and oil marketing companies. Major stocks trading in negative territory included HBL, MCB, UBL, NBP, MARI, OGDC and HUBCO, according to 24NewsHD.
Investor attention remained focused on Pakistan’s ongoing discussions with the International Monetary Fund, alongside the economic effects of Middle East instability. The government told the visiting IMF review mission that the Gulf conflict and disruption in the Strait of Hormuz had caused revenue losses during the first quarter and slowed economic activity, according to the report.
The latest decline follows another negative session on Monday. The KSE-100 had lost 339.60 points, or 0.20%, to settle at 170,425.62, after moving between an intraday high of 171,126.52 and a low of 170,120.50.
Monday’s weakness was linked to uncertainty surrounding US-Iran diplomacy and the future of the Strait of Hormuz, a crucial route for global energy shipments. Higher oil prices added to investor concerns about inflation and Pakistan’s external financing requirements.
Global financial conditions also remained challenging on Tuesday. US Treasury yields had risen sharply, with the benchmark 10-year yield moving above 5.27%, according to market reporting cited by 24NewsHD. Rising bond yields can reduce investors’ appetite for equities by increasing returns available from fixed-income assets.
The KSE-100 has now declined for two consecutive sessions, losing a combined 1,164.82 points from Friday’s closing level to Tuesday’s close.
Tuesday’s session illustrates the competing pressures facing Pakistani equities: negotiations with the IMF remain important for macroeconomic confidence, while developments in the Gulf and the Strait of Hormuz continue to influence oil prices, inflation expectations and investor risk appetite.
