The Pakistan Stock Exchange came under pressure on Thursday as the benchmark KSE-100 Index declined sharply amid rising global geopolitical tensions and a spike in crude oil prices. The index traded between 152,052.19 and 150,022.43, compared to the previous close of 155,511.56, reflecting a decline of up to 3.53% during intraday trading.
Investor sentiment weakened following remarks by former US President Donald Trump, who warned of intensified action against Iran, raising fears of further escalation in the Middle East. The developments contributed to a global risk-off environment, pushing oil prices higher by 4–7%, with Brent crude crossing $105 and WTI trading above $103.
Market analysts noted that heightened uncertainty over potential conflict and the possible impact on the Strait of Hormuz, an important global oil transit route—has added to volatility across equities and commodities. International markets also mirrored the downturn, with US, European, and Asia-Pacific indices trading lower.
On the domestic front, liquidity activity remained active as the government raised Rs753 billion through Treasury bill auctions. Meanwhile, inflation edged up to 7.3% in March, and investors are closely monitoring the upcoming State Bank of Pakistan policy decision scheduled for April 27.
The previous session had seen a strong rally in the benchmark index, highlighting the sharp reversal in sentiment driven by external geopolitical factors.