KARACHI: The Pakistan Stock Exchange came under heavy selling pressure on Thursday, with the benchmark KSE-100 Index falling 2,690.48 points, or 1.54%, as investors cut exposure amid rising market volatility and global uncertainty.
The index closed at 171,739.44 after a turbulent session. It opened higher and climbed to an intraday peak of 175,237.59 before widespread selling across major sectors wiped out the early gains.
The KSE-100 later touched a session low of 171,655.09 before recovering slightly at the close.
The sharp decline came despite S&P Global upgrading Pakistan’s long-term sovereign credit rating from “B-” to “B”, citing improved institutional stability and continued progress on economic reforms under the International Monetary Fund programme.
S&P maintained a stable outlook, saying stronger political and institutional conditions, along with sustained reforms, could support fiscal consolidation and long-term economic growth.
However, the rating upgrade failed to lift investor confidence as geopolitical tensions in the Middle East continued to raise concerns over global oil prices, inflation and economic uncertainty.
Traders remained cautious as Brent crude moved towards $96 per barrel following renewed US strikes on Iran and attacks by Yemen’s Houthis on oil tankers in the Red Sea.
Higher energy prices have added to inflation concerns and strengthened expectations that the US Federal Reserve could keep monetary policy tighter for longer.
KSE-100 Extends Recent Decline
Thursday’s losses extended the market’s recent downward trend.
On Wednesday, the KSE-100 Index had declined by 1,703.64 points, or 0.97%, to settle at 174,429.93.
Taken together, the index lost more than 4,300 points over the two sessions as investors continued to reduce positions in the face of domestic and international uncertainty.
Global Markets Show Mixed Trend
Asian stock markets moved higher after major US technology companies announced fresh investment in artificial intelligence infrastructure, supporting semiconductor and technology shares across the region.
The positive trend in Asian equities contrasted with the weakness at the PSX, where concerns over oil prices, inflation and geopolitical risks overshadowed the impact of Pakistan’s credit-rating upgrade.
Also Read: PSX Closes Higher as KSE-100 Adds 125 Points to Reach 175,927
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