PSX plunges 1,332 points amid heavy sell-off

The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Thursday, with the benchmark KSE-100 Index losing more than 1,300 points as rising oil prices, inflation concerns and uncertainty surrounding US-Iran developments weighed on investor sentiment.

The KSE-100 Index dropped 1,332.47 points, or 0.78%, to close at 168,636.85. During the session, the index touched a high of 170,688.38 before falling to an intraday low of 168,567.78. Official PSX data confirmed the closing level and daily decline.

The market initially opened on a positive note, with the benchmark gaining ground in early trading. However, selling pressure intensified as the session progressed, reversing the early gains and pushing the index lower.

A rise in international oil prices added to market concerns. Crude prices climbed amid tighter fuel-market conditions and uncertainty over efforts to resolve the ongoing US-Iran conflict. Oil-market volatility has remained a key concern for investors because higher energy prices can increase external financing and inflationary pressures.

Pakistan’s inflation also remained a factor in market sentiment. Consumer inflation eased to 10.26% in September from 11.1% in August, but remained elevated compared with the State Bank’s medium-term inflation objective.

Market analysts said improving inflation trends, stronger external accounts and reduced domestic political uncertainty could help restore investor confidence. They also pointed to progress in US-Iran diplomacy and the normalisation of trade flows from Gulf countries as developments that could influence market sentiment.

Trading activity remained substantial, with around 548.3 million shares changing hands, compared with 591.2 million shares in the previous session. Of the companies traded in the ready market, 121 closed higher, 323 declined and 48 remained unchanged.