PSX: Selling continues, KSE-100 sheds nearly 2% on Middle East conflict, oil surge

Business Recorder reported that the Pakistan Stock Exchange extended its losses on Thursday after Iran and the United States carried out large attacks on shipping. They were the biggest such assaults since the six-month-old conflict began. By 3:10pm the KSE-100 stood at 168,564.52, a fall of 3,379.07 points or 1.97%, after a 698.56-point decline on Wednesday.

Business Recorder quoted Sana Tawfik, Head of Research at Arif Habib Limited, who pointed to renewed US-Iran friction over the previous day or two as a main driver. She said the combination of that friction and oil trading above $100 a barrel had fed the sell-off. Domestic oil prices have risen consecutively, bringing monetary policy into sharper focus. She expects the State Bank of Pakistan to hold its status quo at Monday's announcement.

Islamabad said it had held no talks on a military reply under the Makkah agreement to Houthi attacks on Saudi Arabia, though it would act when the moment arrives. Losses were broad, hitting car makers, cement producers, lenders, fertiliser firms, upstream oil and gas explorers and fuel marketers. The index heavyweights PSO, MARI, OGDC, PPL, FFC, MCB, MEBL and NBP all traded lower.