Stock market slips 1.6% on Hormuz uncertainty

According to The Express Tribune, the benchmark KSE-100 index ended the week at 177,167, shedding 2,938 points or 1.63 per cent. Sentiment stayed subdued as worries about the US-Iran standoff and local political developments lingered. Friday's session brought some relief, with the index gaining 575 points or 0.33 per cent after a run of losses.

The week opened on a firmer note, with the index adding 398 points on Monday to reach 180,502. Selling took hold from Tuesday, when the KSE-100 dropped 2,547 points, followed by further declines on Wednesday and Thursday. JS Global's Wadee Zaman linked uncertainty around the Strait of Hormuz to an 8 per cent jump in Brent crude, to $94 per barrel over the week.

On the domestic front, petrol rose Rs12.35 to Rs337.78 per litre, while high-speed diesel fell Rs19.25 to Rs364.70 per litre. The diesel cut followed a government cap on the crack spread, set at $41.5 per barrel against an international margin of $68. Separately, the Petroleum Division sent the Cabinet Committee on Energy a plan to settle Rs1.49 trillion of gas-sector circular debt, against total circular debt of Rs3.6 trillion. Key measures include Rs540 billion of payouts from OGDC, PPL and GHPL, a Rs5 per litre petroleum levy and savings from reduced LNG cargoes.