PSX tumbles 2,541 points as oil shock rattles sentiment

Express Tribune reported that the Pakistan Stock Exchange opened the week with a sharp decline on Monday, as the KSE-100 index lost 2,541.20 points, or 1.49 per cent, closing at 167,970.66. Crude prices climbed on concerns about disruptions to global energy supplies, and investors worried that costlier oil would weigh on economies and company profits. Renewed pressure on energy markets left traders cautious from the first session of the week.

The index stayed weak through the session, moving between a high of 170,437.73 and a low of 167,441.64. Declines were widespread, with commercial banking, cement, fertiliser and oil and gas stocks all dragging the market lower. United Bank, Fauji Fertiliser, Lucky Cement and OGDC were among the heaviest losers. Brent crude hovered near $109 a barrel as negotiations including Iran, Gulf powers and the US were delayed.

Sentiment also suffered after an Iran and Gulf powers meeting was put off and attacks intensified around two major oil transit routes. Trading volume eased to 570.4 million shares from 687.4 million on Friday, worth Rs24.6 billion, and only 83 of 492 traded stocks closed higher. The State Bank kept its policy rate unchanged after the close, which offered some stability. Cnergyico led on volume with 97.2 million shares, shedding Rs0.12 to finish at Rs12.81.