KARACHI: After staging a massive recovery rally in the last two sessions driven by selective buying, the Pakistan Stock Exchange on Friday faced renewed selling pressure.
The surge in oil prices amid growing uncertainty in the Middle East reignited fears of supply disruptions, which could increase inflationary pressures, especially in countries heavily dependent on energy imports through the Strait of Hormuz, including Pakistan.
Topline Securities Ltd said the index remained under pressure, closing at 175,802.79 points, down 2,320.78 points, or 1.3 per cent. The negative sentiment was largely driven by escalating geopolitical tensions, as reports indicated that the US and Iran had intensified attacks beyond military targets, raising concerns about a broader conflict and the absence of any agreement regarding the strait.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX saw mixed trading, opening higher on selective buying before profit-taking emerged in the latter half as investors booked gains ahead of the weekend. Elevated geopolitical tensions also weighed on sentiment following fresh exchanges of strikes between the US and Iran, prompting a cautious stance among market participants.
