PSX extends losses as oil tops $100, Middle East tensions ri – Profit by Pakistan Today

Pakistan Stock Exchange Posts Further Losses as Oil Prices Exceed $100 and Regional Tensions Intensify

In initial trading, the KSE-100 Index plummeted more than 2,600 points, reversing much of the gap during the session due to sustained selling pressure.

Bearish investors reinforced their dominance on Friday, citing mounting geopolitical tensions and oil prices surpassing $100 per barrel that kept markets in a state of anxiety. Heightened incidents along critical Middle Eastern shipping lanes have increased concerns regarding potential supply chain disruptions.

Opening on a shaky note, the PSX barrier held against an intraday low of 166,141.17, marking a descent of over 2,600 points in the first half-hour of trading.

Throughout the session, gains emerged, and the index recovered much of its ground. By noon, the KSE-100 stood at 168,105.05, reflecting a decline of 759.99 points (-0.45%) compared to the prior close.

Across several sectors, selling pressure remained evident, affecting auto manufacturers and their suppliers, build materials, energy producers, utilities and various consumer discretionary industries.

Equity exposure to indices comprising ARL, HUBCO, OGDC, PPL, POL, MARI, MCB, MEBL, NBP and UBL saw significant declines.

The benchmark KSE-100 Index posted a larger intraday decline of 3,078.56 points, dropping 1.79% to end the day at 168,865.04.

Geopolitical volatility remains the chief near‑term risk for equities. Intermarket Securities highlighted that investor outlooks are pivoting toward developments surrounding the Strait of Hormuz, the forthcoming IMF assessment, and ongoing domestic reform initiatives.

Negotiations between Pakistan and the International Monetary Fund are set to commence on September 22 for the fourth Review of the $7 billion Extended Fund Facility, alongside resumed Article IV consultations following a two‑year absence.

Worldwide, sovereign bond yields reached multi‑year peaks while Asian equities declined on Friday, buoyed by soaring oil prices that heightened worries about inflation and prompted central banks worldwide to consider tighter monetary policy.

Asian debt also contributed to the global slide, with Australia’s three‑year Treasury hitting a 15‑year high of 5.01% and Japan’s ten‑year yield rising 8 bps to 2.98% as persistent wholesale inflation underscores calls for an imminent Japanese rate increase.

MSCI identified the broadest non‑Japanese Asia‑Pacific index suffered a 1.5% retreat, while Japan’s Nikkei slipped 2.2%; Chinese large‑cap firms fell 0.8% and Hong Kong’s Hang Seng closed lower at 0.6%.

Although crude prices eased on Friday, both leading benchmarks are poised to finish the week beyond $100 a barrel—first time since May—a trajectory reinforced by intensifying threats from attacks on key Middle eastern shipping routes.

Brent crude futures slipped $1.64 (1.5%) to $105.99 per barrel by 0643 GMT. US West Texas Intermediate fell $1.28 (1.3%) to $101.20.

The benchmarks remained above one‑decade highs throughout the week, the steepest gains occurring since the last week closing on July 17.

Iran‑aligned Houthis seized control of Yemen’s port of Mocha on Thursday, posing further danger to Red Sea traffic, while Gulf transit stays restricted via the Strait of Hormuz as tanker assaults in the region have intensified in recent days.

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