PSX falls 3,362 points as oil surge and inflation rattle investors
The PSX opened June with a steep decline, as the KSE-100 index lost 3,362 points amid higher oil prices, geopolitical tensions and rising inflation. Heavy selling in major stocks pushed the benchmark to 170,600 by the close.
KARACHI: The Pakistan Stock Exchange began June on a sharply weaker note, with the benchmark KSE-100 index dropping 3,362 points as investors sold shares amid rising inflation and renewed geopolitical uncertainty.
According to Topline Securities Ltd, bearish sentiment dominated the trading session and kept the market under pressure throughout the day. The index fell below 171,000 points during intraday trade, touched a low showing a decline of 3,565 points, and eventually settled at 170,600, down 1.93 per cent.
The selling was linked to a rise in international oil prices after the United States and Iran failed to reach a concrete agreement, while tensions in the Middle East also added to concerns. The conflict between Israel and Lebanon intensified, lifting oil prices and reviving worries over inflation and pressure on Pakistan’s external account, which in turn hurt investor confidence across major sectors.
Another factor weighing on sentiment was the latest inflation reading. Consumer Price Index-based inflation rose to 11.66pc in May, up from 10.89pc a month earlier, pointing to increased price pressures.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX closed weak as investor mood remained fragile in the absence of a conclusive US-Iran peace agreement over the weekend, leading to widespread selling in key sectors. He noted that inflation was at its highest level since June 2024, though it was broadly in line with Bloomberg’s forecast of 11.5pc and below the market consensus estimate of 12.2pc.
Heavyweight stocks were the main drag on the index. These included Engro Holdings, Fauji Fertiliser, Lucky Cement, Oil and Gas Development Company, Pakistan Petroleum, Hub Power, United Bank, Engro Fertiliser, Meezan Bank and Habib Bank. Collectively, these shares pulled the benchmark down by 2,127 points.
Despite the steep fall in the index, trading activity remained relatively strong. Share volume increased 6.25pc to 589 million shares, although traded value dropped 21.75pc to Rs31.9 billion, indicating continued participation in a volatile market.
Dewan Cement led the volume chart with 43 million shares traded during the session.
Comments
No comments yet. Be the first to join the discussion!
