Stocks nosedive 6.3pc in jittery week on geopolitical concerns

KARACHI: The Pakistan Stock Exchange (PSX) experienced an unprecedented decline during the outgoing week amid geopolitical tensions following the outbreak of conflict in the Middle East and border disputes along the western front.

On the first day of trading on Monday, the benchmark KSE-100 index suffered a historic decline, wiping out over 16,089 points or 9.57 per cent in a single session, causing equity investors to lose Rs1.7 trillion as overwhelmed and panicked investors hurried to exit the market amid fears of a prolonged war in the Gulf.

Although bargain-hunting on Tuesday and Thursday triggered a partial rebound, sentiment remained fragile. Investors were also unsettled by heightened security concerns following Pakistan’s retaliatory airstrikes targeting terrorist camps inside Afghanistan.

The US-Israel nexus’s illegal war against Iran has caused significant instability in the Middle East, impacting the global economy. This unrest led to disruptions in oil supplies as major shipping companies halted operations to and from the Gulf, causing energy prices to rise and prompting the government to adopt contingency measures, including weekly reviews of petroleum prices to pass on the increased costs to consumers and Covid-like measures such as working from home, switching to online classes to conserve oil stocks.

Index slips to 157,496 on panic-selling

Index slips to 157,496 on panic-selling

As a result, extending the losses for the sixth straight week, the benchmark KSE-100 index recorded a steep decline of 6.3 per cent, or 10,566 points, closing at 157,496 points.

According to Topline Securities Ltd, the week’s decline reflected investors’ efforts to reduce exposure amid mounting risks to global energy supply chains and regional stability.

Foreign investors remained net sellers during the week. Foreign corporates offloa­ded equities worth $25.5........

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