Oil prices climbed for a third consecutive session Tuesday, heightening concern that instability along key Middle East shipping lanes could lead to prolonged disruptions in regional crude supplies.
KARACHI: The Pakistan Stock Exchange remained under pressure on Tuesday as fears of an extended Middle East conflict unsettled investors, while rising oil prices further weakened risk appetite. The benchmark KSE-100 Index dropped 993.92 points, or 0.57%, to close at 172,642.16.
The index traded sideways throughout much of the session. It touched an intraday high of 173,736.20 and later fell to a low of 171,490.63 before recovering part of its losses to end the session lower.
The deteriorating geopolitical outlook left investors on the defensive, with concerns growing that the Iran conflict could expand into a wider regional war. Reports of attacks by the Houthis on energy facilities and cities in US ally Saudi Arabia, which left more than 70 people injured, intensified those concerns.
Oil prices rose for a third straight session, trading near six-week highs as escalating US-Iran tensions raised fears of prolonged disruptions to crude supplies from the Middle East. Higher energy costs were expected to weigh further on domestic business activity and investor sentiment.
Selling pressure spread across several sectors, with automobile assemblers, cement companies, commercial banks and oil marketing firms among the most affected.
Despite the volatility, trading stayed active as investors repositioned themselves amid uncertainty. Some buying emerged near session lows, helping the index recover, although sentiment remained cautious as developments in the Middle East were closely followed.
KTrade Securities said the KSE-100 moved more than 2,200 points during the session, climbing to 173,736 before dropping to 171,490. At one stage, the index had lost more than 2,000 points before staging a strong recovery.
The rebound coincided with oil easing from around $100 per barrel to approximately $98.30, providing some relief to investors. However, the recovery was limited, with banks, cement companies and automobile assemblers continuing to weigh on the index.
KTrade projected that volatility would remain elevated, with crude prices serving as a key driver of market sentiment. Further declines in oil could offer relief, while renewed gains could trigger renewed selling pressure.
Total trading volume rose to 722.6 million shares from 679.1 million on Monday, while the value of traded shares stood at Rs27.9 billion. In the ready market, shares of 496 companies changed hands, with 101 stocks gaining, 359 declining and 36 remaining unchanged.
Cnergyico Pakistan led the volume charts, trading 103.9 million shares and adding Rs0.30 to close at Rs13.32.