Selling continues at PSX, KSE-100 down 2,000 points as tensions

After a positive start, selling pressure returned at the Pakistan Stock Exchange (PSX) amid a tense geopolitical situation, with the benchmark KSE-100 Index shedding over 2,000 points during the opening hours of trading on Thursday. At 11:24am, the benchmark index was hovering at 179,602.89, down by 2,026.47 points or 1.12%. Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, KE, MARI, OGDC, PPL, PSO, SNGPL, SSGC and WAFI, traded in the red. The International Monetary Fund (IMF) has projected Pakistan’s economy to grow by 3.5% in fiscal year 2026-27, falling short by 0.5 percentage points of the government’s 4% growth target. In its latest World Economic Outlook (WEO) Update, released on Wednesday, the IMF also maintained its 3.6% GDP growth forecast for fiscal year 2025-26. On Thursday , PSX suffered one of its steepest single-day declines as renewed geopolitical tensions in the Middle East sparked widespread panic selling, with investors rushing to reduce exposure after fresh US strikes on Iran and escalating concerns over a broader regional conflict pushed international oil prices sharply higher. The benchmark KSE-100 Index plunged 4,626.18 points, or 2.48%, to close at 181,629.37 points. Internationally, Asian shares climbed on Thursday as semiconductors got a respite from heavy selling, though ​gains were capped by a surge in oil prices as a resumption of hostilities in the Gulf reignited ‌inflation fears and hammered bonds. Oil prices rose for a third straight session after President Donald Trump said the interim agreement with Iran to end the war was “over”. The U.S. military also launched fresh strikes on Iran for a second day to keep open the Strait of Hormuz, although Trump later said he did not ​expect a return to a full-fledged war, helping soothe concerns. Brent crude futures rose 0.8% to $78.65 a barrel and were ​up 9% this week to cross above $80 a barrel for the first time since June 22. That knocked ⁠global bond markets and boosted bets that the Federal Reserve will have to raise interest rates this year to tame inflation, ​with Fed funds futures now implying 38 basis points of policy tightening this year, back to where they were a week ago. Wall ​Street initially fell on Trump’s comments but climbed off session lows, with the Nasdaq eking out a small gain of 0.2%. Chip giant Nvidia rallied 3.6% after media reports that China plans to allow its top AI firms to buy a limited number of the company’s H200 chips. MSCI’s broadest index of ​Asia-Pacific shares outside Japan rose 0.8%, while Japan’s Nikkei climbed 2.3% to break a three-day losing streak. This is an intraday update