KARACHI:
The KSE-100 Index fell 1,138 points, or 0.68%, on Thursday as rising international oil prices and heightened geopolitical uncertainty weighed on investor sentiment.
According to a market wrap by KASB KTrade, the benchmark index closed at 167,441 points, with pressure intensifying as Brent crude breached the $104-per-barrel mark and traded near $105, gaining nearly 5% during the day.
Oil prices rose on growing supply concerns amid geopolitical tensions and uncertainty surrounding the Strait of Hormuz.
The decline came despite the successful completion of Pakistan’s latest International Monetary Fund (IMF) review, which cleared the way for a potential $1.2 billion tranche release.
Read: Pakistan, IMF reach staff-level agreement on $1.2b loan
Market participation remained weak, with 152 million shares changing hands during the session.
Commercial banks, fertiliser, oil and gas, and technology stocks were among the sectors weighing on the benchmark. UBL, FFC, SYS, EFERT and POL were among the major stocks contributing to the index’s decline.
KEL, CNERGY, PIBTL and FCCL emerged as some of the most actively traded stocks by volume.
Ahmed Sheraz, Head of Support Trading at KASB KTrade, said market sentiment was likely to remain cautious until greater clarity emerged over the geopolitical situation and the direction of international oil prices.
He said a sustained moderation in energy prices could provide relief to equities.
The surge in global oil prices remains a key risk for Pakistan’s economy and financial markets, given the country’s reliance on imported energy and the potential impact of higher oil costs on inflation, the external account and corporate profitability.
