Get the latest news and updates from Dawn
KARACHI: After a positive performance in the outgoing month, the Pakistan Stock Exchange (PSX) opened the first session of June on a negative note as nervousness gripped equity investors, prompting hasty selling amid a spike in inflation and growing uncertainty surrounding the peace diplomacy.
The United States and Iran failed to reach a concrete agreement, causing a flare-up in tensions and a surge in oil prices, which dragged the benchmark KSE-100 index down to below 171,000 points intraday.
Topline Securities Ltd said bears firmly dominated the trading session as investor sentiment turned sharply negative, dragging the benchmark index deep into the red. The market remained under persistent selling pressure throughout the session, with the benchmark index touching an intraday low of 3,565 points before eventually closing at 170,600, down 3,362 points or 1.93 per cent.
The negative momentum was driven primarily by a surge in international oil prices amid escalating geopolitical tensions in the Middle East, as the conflict between Israel and Lebanon intensified. Elevated oil prices reignited concerns about inflation and external account pressures, dampening investor confidence and triggering broad-based selling across key sectors.
