KSE-100 Drops Over 1,300 Points Amid Market Concerns

KARACHI: The Pakistan Stock Exchange (PSX) fell on Thursday as rising oil prices and concerns over inflation affected investor sentiment. Uncertainty over renewed US-Iran diplomatic efforts also kept investors cautious.

The benchmark KSE-100 Index dropped 1,332.47 points, or 0.78%, to close at 168,636.85. During the session, the index reached a high of 170,688.38 and a low of 168,567.79.

Oil prices rose around 2% during the session after China suspended oil product exports. The move added to concerns about global fuel supplies as investors continued to monitor diplomatic efforts to end the US-Iran war.

In Pakistan, inflation slowed to 10.26% in September from 11.1% in August, mainly due to food prices. However, inflation remained above the State Bank’s medium-term target range.

The market opened positively, with the KSE-100 reaching 170,270.16, up 300.84 points, or 0.18%, at 10:15am. However, the index lost ground as trading continued.

Muhammad Awais Ashraf of AKD Securities said easing inflation, a strong external account position and lower domestic political uncertainty could improve investor confidence.

He said any positive development in the US-Iran war could support the market, while the normalisation of trade flows from the Gulf countries could help reduce the impact of the ongoing crisis.

“We advise investors to remain in banks, Exploration &Productions, fertiliser, textile, OMCs, technology, steel and automobile sectors. Within these, E&Ps and OMCs are positioned to benefit from resolution of gas sector circular debt,” Ashraf wrote.

Trading volume stood at 548.3 million shares, down from 591.2 million shares on Wednesday.

In the ready market, shares of 121 companies advanced, 323 declined and 48 remained unchanged.

Kohinoor Spining was the volume leader, with 93.8 million shares traded. Its share price rose Rs0.11 to close at Rs5.84.