Stocks swung sharply lower on Thursday, with heavy selling knocking the market down more than 6,000 points as escalating US-Iran tensions undermined sentiment.
“The market was jittering owing to potential Iran and US conflict and tensions heating up seriously. A lesser-than-expected earnings result in FFC led to the stock hit lower lock and the market erased 3,500 points in a go," said AAH Soomro, an independent investment and economic analyst.
"A good and timely correction as earnings season isn't exciting and a good consolidation point,” he added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 182,338.12 points, down 6,042.26 points, or 3.21%, from 188,380.38.
The index traded between a high of 188,923.39, up 543.01 points, or 0.29%, and a low of 181,961.14, down 6,419.24 points, or -3.41%, for the session.
Adding to the uncertainty, US President Donald Trump warned Iran that time was running out to avert American military action, citing a naval strike group in regional waters and urging talks over Tehran’s nuclear programme, further stoking regional risk premiums.
On Monday, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 10.5% for two months, noting headline CPI at 5.6% in December was in line with expectations, while core inflation remained around 7.4%.
The Monetary Policy Committee (MPC) flagged stronger-than-anticipated momentum in high-frequency activity (including LSM), a wider trade deficit on higher import volumes and softer exports, and a contained current account supported by remittances and benign global commodities.
With inflation and external outlooks broadly unchanged but growth prospects improving, the MPC judged it prudent to hold rates to anchor price stability and support sustainable expansion.
On Wednesday, the KSE-100 rose 177.53 points (0.09%) to 188,380.39 after moving between 189,183.88 and 188,179.51.
