PSX extends losses amid IMF concerns, geopolitical uncertainty

Investor nerves remained on edge at the Pakistan Stock Exchange (PSX) on Friday as geopolitical uncertainty, rising oil prices, and fresh IMF conditions kept selling pressure intact for a second straight session. 

Selling was observed in major sectors including apparel, automobile assemblers, oil and gas exploration companies, power generation firms, cement and commercial banks. Index-heavy stocks, including HUBCO, OGDC, PPL, PSO, HBL, MEBL, NBP and UBL traded in negative territory during intra-day activity.

Market closed at 165,596.07, down by 902.76 points or 0.54% from the previous close.

The investor sentiment remained weak despite Pakistan’s recent entry into the Chinese capital market with a $250 million Panda Bond issuance, as markets reacted to IMF warnings regarding regional exposure and continued uncertainty surrounding US-China discussions over the Iran conflict.

As per media reports, the IMF imposed 11 new structural benchmarks for Pakistan, including conditions linked to energy tariff adjustments, parliamentary approval of the FY27 budget, phase-out of tax incentives of SEZs and reforms aimed at strengthening NAB’s autonomy and transparency.

On Thursday, the KSE-100 lost 952.30 points or 0.57% to close at 166,498.84 points.

Analysts attributed the continued volatility to uncertainty surrounding US-Iran developments and elevated global oil prices, which triggered broad-based selling in index-heavy sectors.

Globally, Asian shares dived on Friday as investor euphoria over tech stocks gave way to inflation fears that saw Treasury yields ‌spike to one-year highs and rising bets on a U.S. rate hike this year.

On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.3% and was set for a weekly loss of 1.8%.

Japan’s ​Nikkei also dropped 1.8% as data showed the country’s wholesale inflation accelerated to 4.9% in April, the fastest pace in three years, leaving the Bank of Japan on ​track to raise interest rates.

South Korea’s KOSPI topped 8,000 points for the first time and then crashed, falling by over 5%. China’s blue-chip eased 0.6%, while Hong Kong’s Hang Seng index ‌fell 1.4%.

European stocks are bracing for a much weaker open, with pan-region stock futures down 1%. The Nasdaq futures fell 0.6% while the S&P 500 futures slipped 0.4% after Wall Street vaulted to new heights on a 4% surge in AI darling Nvidia.

Oil prices kept climbing amid the lack of progress to open the ​Strait of Hormuz, and as U.S. President Donald Trump said China wanted to buy U.S. oil. Attacks on one ship and the seizure of ​another stoked concerns about energy supplies, with Brent crude futures up 5.7% this week to $107 a barrel.