The index experienced an early plunge of over 1,800 points before rebounding to an intraday peak of 172,718.66, ultimately retreating to close at 171,021.20 as profit-taking emerged.
Following a significant decline the previous day, stocks at the Pakistan Stock Exchange (PSX) underwent a volatile session on Friday, with the KSE-100 Index closing over 700 points lower after losing much of its afternoon rally gains.
According to data from the PSX, trading opened under heavy pressure, causing the index to drop more than 1,800 points to an intraday low of 169,512.88.
Market sentiment shifted as the session progressed. Increased buying in blue-chip stocks during the second half of the day saw the index surge over 800 points to reach an intraday high of 172,718.66, representing a massive 2,500-point swing from the morning low.
However, the recovery faltered late in the session. A renewed wave of profit-taking during the final trading hours erased most of the afternoon’s gains.
The KSE-100 ultimately settled at 171,021.20 points, marking a decrease of 718.24 points, or 0.42%, from the previous close.
On Thursday, the benchmark index had slumped 2,690.48 points (1.54%) to close at 171,739.45, driven by investor anxiety over rising global crude oil prices and escalating tensions between the United States and Iran.
Global bond yields remained near multi-decade highs on Friday. Rising oil prices linked to Middle East conflicts have intensified concerns regarding inflation and the potential for additional interest rate hikes. In contrast, U.S. and European equities showed signs of recovery from their weekly lows.
Inflationary concerns were heightened following the U.S. administration’s announcement of proposed higher tariffs on goods from 60 trading partners. Consequently, 30-year Treasury yields moved toward their highest levels since 2007, while German 10-year Bund yields remained near their 2011 peaks.
The pan-European STOXX 600 rose by 0.3%, recouping part of its previous session’s decline. Wall Street futures also signaled a slight recovery, with Nasdaq futures up 0.1%. Intel shares jumped nearly 4% in premarket trading following strong quarterly results, providing some stability to a tech sector currently navigating uncertainty regarding the return on massive AI investments.
Brent crude prices fell 3% to $97.69 a barrel, retreating from an overnight 7% surge that had pushed prices to a two-month high of $102. Disruptions in the Red Sea, caused by Houthi attacks on Saudi tankers, alongside tensions regarding the Strait of Hormuz, continue to impact global oil supply stability.
