PSX ends lower amid fears over sustainability of Middle East ceasefire

Following Wednesday’s historic rally, sentiment at the Pakistan Stock Exchange turned cautious on Thursday, with the benchmark KSE-100 Index closing nearly 300 points lower as concerns mounted over the sustainability of a two-week Middle East ceasefire.

According to PSX data, the market opened on a negative note, with the benchmark index falling to an intraday low of 161,993.00, down 3,818 points as of 09:34 am. The index later trimmed some losses and remained largely flat during midday trade before gaining momentum after 1:00 pm, rising to an intraday high of 166,812.93, gaining over 1,100 points.

However, the market closed at 165,517.51, down by 293.49 points, or 0.18% from the previous close.

Selling was observed across key sectors, including automobiles, chemicals, and commercial banks. 

Today’s decline comes a day after the market recorded a sharp rally, with the KSE-100 Index gaining 14,137.55 points, or 9.32%, to close at 165,811.01.

Market participants cited uncertainty around the two-week ceasefire between Iran and the US and its impact on energy flows through the Strait of Hormuz, which has renewed concerns over supply disruptions.

Global markets also reflected cautious sentiment. Oil prices moved higher, with US crude futures rising 2.8% to $96.99 per barrel and Brent crude increasing 2.1% to $96.74 per barrel.

In Asia, Japan’s Nikkei traded flat after a previous gain of 5.4%, while South Korea’s Kospi declined 0.4% following a 6.8% rise. MSCI’s Asia-Pacific index excluding Japan fell 0.3%.

US futures weakened, with S&P 500 and Nasdaq futures both down 0.2%. European markets showed mixed trends, with EUROSTOXX 50 futures up 0.1%, DAX futures down 0.3%, and FTSE futures gaining 0.5%.