PSX sinks 1,109 points as oil, Hormuz risks hit sentiment

The Pakistan Stock Exchange ended Wednesday's session in negative territory, according to The Express Tribune, with the KSE-100 falling 1,109.15 points, or 0.62 per cent, to close at 176,846.36. The index had begun the day firmly higher, climbing 483.18 points to 178,438.68 by 9:34am, but the advance did not last. Climbing crude costs and doubts about passage through the Strait of Hormuz weighed on investor confidence later in the day.

Crude prices hit their loftiest level in about three weeks, while supply disruptions worldwide intensified worries about energy costs. In the late session, reports that Prime Minister Shehbaz Sharif had asked Petroleum Minister Ali Pervaiz Malik to visit Karachi and discuss fuel price relief with refineries added to the pressure. According to Arif Habib Limited, these reports triggered broad selling in the refinery sector, which dragged down the wider market.

Overall trading volume dropped to 787.8 million compared with Rs1.03 billion on Tuesday, with Cnergyico Pk leading the board at 217.5 million shares. In the ready market, shares of 496 companies changed hands, with 185 closing higher, 271 falling and 40 unchanged. Ten stocks, including United Bank and Habib Bank, together took 859 points off the index.