PSX Drops Over 2,500 Points Amid Negative Sentiment

The Pakistan Stock Exchange (PSX) closed lower on Tuesday as rising tensions in the Middle East and weaker hopes for a deal to end the conflict affected investor confidence.

The benchmark KSE-100 Index fell 2,546.94 points, or 1.41%, to close at 177,955.50.

Selling was seen across several major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation.

Major stocks such as HUBCO, MARI, OGDC, PPL, POL and UBL also remained under pressure during the trading session.

The market had gained on Monday, with refinery stocks leading the recovery after reports of a multi-billion-dollar refinery modernization and expansion programme.

However, profit-taking in some major stocks limited the overall gains. The KSE-100 had closed 397.83 points, or 0.22%, higher at 180,502.45 on Monday.

Meanwhile, oil prices continued to rise on Tuesday for the third straight session as hopes for an agreement to end the Middle East conflict weakened.

Brent crude futures increased by 89 cents, or 1%, to $91.76 a barrel by 0641 GMT. The price reached its highest level since July 30.

The rise in oil prices and concerns over possible disruptions to energy supplies added to uncertainty in financial markets.