PSX hit by heavy selling as KSE-100 sheds 6,000 points

Pakistan Stock Exchange (PSX) witnessed a bloodbath on Thursday, with the benchmark KSE-100 Index falling sharply by more than 6,000 points as investors reacted to heightened geopolitical uncertainty. 

The index closed at 182,338.12 points, a decrease of 6042.26 points or 3.21%, from the previous close of 188,380.38

Selling was observed across major sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, power generation and refineries. Index-heavy stocks such as ARL, HUBCO, OGDC, POL, HBL, MEBL, MCB and UBL traded in negative territory, weighing on the broader market.

Market participants linked the downturn to external risks. They said that geopolitical developments and higher oil prices were reinforcing expectations that interest rate easing could be delayed due to elevated uncertainty. 

The decline followed a marginally positive session on Wednesday, when selective buying in energy, power generation and banking stocks helped the KSE-100 Index close up 177.53 points, or 0.09%, at 188,380.39, despite weak overall market breadth.

Internationally, Asian equities were mixed on Thursday as investors exercised caution ahead of earnings from major technology companies, including Apple. Precious metals climbed to record highs as investors increased exposure to physical assets, while oil prices rose to a four-month high amid geopolitical tensions.

The US Federal Reserve held interest rates steady, as expected, with Chair Jerome Powell citing an improving economic outlook and broad support within the committee for maintaining the current stance. Market expectations for near-term rate cuts eased further, with June now seen as the more likely window for any policy easing.