Stocks fall for 7th week amid geopolitical tensions

KARACHI: Geopolitical uncertainties continued to affect the Pakistani shares as the benchmark KSE-100 index registered its seventh consecutive week of decline.

The market’s downturn was largely attributed to a lack of positive economic developments and the ongoing delay in finalising a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for the third review of Pakistan’s $7 billion Extended Fund Facility (EFF).

The KSE-100 index began the week with volatility, sharply falling on Monday following a spike in global oil prices. This was prompted by the illegal US-Israel aggression on Iran, which led to closure of Strait of Hormuz. The market later recovered some of its losses, but by the close of Friday, the index had dropped 2.3 per cent to settle at 153,866 points, losing 3,630 points week-on-week.

According to Arif Habib Ltd (AHL), the market’s performance was influenced by a variety of factors, including the uncertain geopolitical landscape, with oil prices surging due to fears of further disruptions in the Middle East. However, the market stabilised after the announcement of a 400 million barrel release from the International Energy Agency’s (IEA) strategic reserves and speculation of easing sanctions on Russian oil.

Index loses 2.3pc as surging oil price and IMF review delay weigh sentiments

Index loses 2.3pc as surging oil price and IMF review delay weigh sentiments

Further exacerbating market sentiment, the IMF’s delay in reaching a Staff-Level Agreement under the third review of Pakistan’s economic programme left investors uncertain about the country’s fiscal........

© Dawn Business