PSX Falls Over 600 Points After Record-Breaking Rally

The Pakistan Stock Exchange (PSX) came under selling pressure on Tuesday as investors booked profits following a historic rally in the previous session.

The benchmark KSE-100 Index fell 638.45 points, or 0.36%, to close at 177,623.88 points.

The decline was mainly driven by profit-taking in several major sectors, including automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, and refineries.

Major stocks including Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDC), Hub Power Company (HUBCO), Mari Energies, and United Bank Limited (UBL) were among the main stocks that weighed on the market.

The market’s decline came a day after the KSE-100 Index posted a record-breaking rally. On Monday, the index jumped 7,241.13 points, or 4.23%, to close at 178,262.34 points.

Investor sentiment had improved after the United States and Iran suspended military strikes. The pause in hostilities raised hopes for a possible diplomatic solution to the conflict and reduced concerns over disruptions to key regional shipping routes.

Meanwhile, international oil prices continued to decline on Tuesday as investors assessed the impact of the pause in fighting between the United States and Iran.

The easing of tensions increased expectations that energy supplies from the Middle East would continue without major disruptions.

Brent crude futures fell by $0.54, or 0.6%, to $87.82 per barrel by 0046 GMT. US West Texas Intermediate (WTI) crude also declined by $0.66, or 0.8%, to $81.95 per barrel.

The movement in global oil prices and developments in the US-Iran conflict are likely to remain important factors for investor sentiment in Pakistan’s stock market in the coming sessions.