The Pakistan Stock Exchange’s benchmark KSE‑100 Index fell on Thursday as a fresh surge in global oil prices, sparked by escalating attacks on energy infrastructure in the Gulf, weighed heavily on market sentiment and triggered profit‑taking. Stocks traded lower throughout the session as rising energy costs stoked inflation concerns and heightened risk aversion among investors.
The KSE‑100 Index fluctuated between an intraday high of 152,698.51 and a low of 150,728.17, closing significantly below the previous session’s finish of 154,292.25. The market’s decline reflected a renewed sell‑off amid fears that elevated oil prices would erode corporate earnings and increase production and import costs across key sectors.
The drop in the PSX came as crude benchmarks rallied sharply in global markets, with prices climbing on fears of prolonged supply disruptions in the Middle East following repeated attacks on Gulf energy assets and critical infrastructure. Analysts said the higher oil trajectory could prolong inflationary pressures in Pakistan’s economy, already grappling with elevated commodity costs.
Market participants reported widespread profit‑booking, particularly in energy‑intensive and cyclical sectors, as traders moved to reduce exposure ahead of potential volatility tied to geopolitical developments. The Pakistani bourse has already experienced heavy swings in recent sessions as external risks continue to dominate investor behaviour.
Traders and analysts said the PSX’s sensitivity to global commodity shocks adds to the challenges facing domestic equities, underscoring how external geopolitical tensions can transmit rapidly into local financial markets.