Shafaqna Pakistan: The Pakistan Stock Exchange (PSX) remained under pressure on Tuesday as concerns over a prolonged Middle East conflict weighed on investor sentiment, while rising oil prices further dampened risk appetite. The benchmark KSE-100 Index dropped 993.92 points, or 0.57%, to close at 172,642.16.
Trading remained volatile, with the index reaching an intraday high of 173,736.20 before falling to 171,490.63. It recovered some ground towards the end of the session but remained firmly in negative territory.
Investors adopted a cautious stance amid growing fears of a wider regional escalation and its potential economic impact. Sentiment was further hit by reports that Houthi attacks on Saudi Arabian cities and energy facilities injured more than 70 people, fuelling concerns that the conflict involving Iran could develop into a broader regional war.
Against this backdrop, oil prices climbed for a third consecutive session on Tuesday, hovering near six-week highs as intensifying US-Iran tensions raised concerns over prolonged disruptions to crude supplies from the Middle East. The rise in oil prices added another layer of pressure to investor sentiment at the PSX, given the potential implications of higher energy costs for the domestic economy.
Weak sentiment was reflected in major sectors, with automobile assemblers, cement, commercial banks and oil marketing companies witnessing selling pressure.
Despite the pressure, trading remained active as investors continued to adjust positions amid the uncertain geopolitical environment. Despite some volatility, the close suggested some buying interest emerged at lower levels, but the overall tone remained cautious as investors awaited further developments in the Middle East.
With tensions continuing to evolve and oil prices remaining elevated, market sentiment is likely to stay sensitive to every fresh development on the geopolitical front.
KTrade Securities observed that the market witnessed extreme volatility, with the index moving between an intraday high of 173,736 and a low of 171,490 in a range of over 2,200 points. At one point, the index was down more than 2,000 points before staging a strong recovery later in the session.
The recovery came as oil prices eased from around $100 per barrel to approximately $98.30 per barrel, providing some relief to market sentiment and allowing the index to recover significantly from its intraday low. Despite the late recovery, overall sentiment remained cautious. Contributions remained mixed, but banks, cements and automobiles were among the major sectors contributing negatively to the index.
Going forward, volatility is likely to remain elevated, with oil prices remaining a key driver of sentiment. Any further moderation in crude prices could provide breathing room for the market, while renewed strength in oil could bring selling pressure back into the index, KTrade predicted.
Overall, trading volume increased to 722.6 million shares from Monday’s total of 679.1 million while the value of traded shares stood at Rs27.9 billion. In the ready market, shares of 496 companies were traded, of which 101 stocks closed higher, 359 fell and 36 remained unchanged.
Cnergyico Pk continues to lead the volume chart with trading 103.9 million shares, gaining Rs0.3 to close at Rs13.32.
Source: Express Tribune
