PSX plunges over 4,700 points as bears maintain control

Bears continued to dominate the trading floor at the Pakistan Stock Exchange (PSX) on Thursday as the KSE-100 plunged by over 4,700 points during intraday trade. KSE-100 declined by 4,786.92 points or 2.89 per cent to stand at 161,036.95 points from the previous close of 165,823.87 points. PSX remained under selling pressure for a third consecutive session on Wednesday, as investors stayed wary of the economic outlook and corporate earnings disappointed expectations. Rising global oil prices amid geopolitical tensions have kept investors cautious, according to analysts. Oil prices soared more than 7pc to a fresh four-year high today, while global stocks fell after Donald Trump warned the US blockade of Iranian ports could last months and a report said he would be briefed on potential fresh military strikes. Brent for June delivery surged 7.1pc to $126.41 per barrel in Asian trade, while West Texas Intermediate climbed 3.4pc to $110.31. Both later pared the gains. Today’s bearish momentum also comes after reports emerged that UAE-based telecom giant Etisalat was said to be in the process of reviewing its exposure to Pakistan’s telecom sector as part of a broader portfolio optimisation exercise. Trade and industry leaders have flagged concerns over the high cost of doing business, citing expensive bank borrowing following the interest rate hike, alongside elevated electricity and gas tariffs, which have weighed on economic activity. Additional input from AFP