Equities fell sharply on Thursday as investors turned risk-averse after US President Donald Trump warned of tougher action against Iran, while a surge in oil prices added to the pressure on sentiment.
The index traded between a high of 152,272.63, down 3,238.93 points or 2.08%, and a low of 150,022.43, down 5,489.13 points or 3.53%, against the previous close of 155,511.56.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 152,011.26 points, down 3,500.30 points, or 2.25%, from the previous close of 155,511.56.
The index between a high of 152,272.63, down 3,238.93 points or 2.08%, and a low of 150,022.43, down 5,489.13 points or 3.53%.
"Yesterday's Trump statement to continue fighting for 2 to 3 weeks and Iran's comments on no ceasefire have increased oil prices today by 5 to 7%. That is dampening the mood," said AAH Soomro, an independent investment and economic analyst.
Trump, in his prime-time speech, said the US will strike Iran "extremely hard" over the next two to three weeks and hit the country into the "Stone Ages", sending stocks retreating.
"The remarks signal potential escalation, keeping investors on edge and reinforcing a risk-off mood, with volatility likely to persist in the near term," said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.
Oil surged after Trump's address did little to ease concerns over the closure of the Strait of Hormuz, with Brent climbing more than 4% to as high as $105.55 and WTI rising 3% to $103.16 after reversing earlier declines.
Risk aversion also weighed on global equities, with US stock futures down 0.67%, European futures 0.1% lower and MSCI's broadest Asia-Pacific index outside Japan falling 0.75%. Japan's Nikkei also reversed course to trade 0.79% lower.
On the domestic front, the government raised Rs753 billion in realised value at Wednesday's Treasury bill auction, with yields mixed, according to the State Bank of Pakistan. The move came after CPI inflation rose to 7.3% year-on-year in March from 7.0% in February, while investors also kept an eye on the next SBP policy meeting due on April 27.
In the previous session, the benchmark surged 6,768.25 points, or 4.55%, to close at 155,511.57 from 148,743.32, in a rally that briefly triggered a market halt after a 5.0% rise in the KSE-30.
