KARACHI: Stocks at the Pakistan Stock Exchange declined on Thursday as a surge in global oil prices, triggered by escalating attacks on Gulf energy infrastructure, weighed on investor sentiment and prompted profit-taking.
The benchmark KSE-100 Index closed at 152,740.37 points, down 1,551.88 points, or 1.01%, from the previous close of 154,292.25. During the session, the index touched an intraday high of 153,322.96 and a low of 150,728.17.
Market participants attributed the downturn to rising energy costs and renewed inflation concerns amid intensifying tensions in the Middle East.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said the market remained under pressure due to higher oil prices following recent attacks on energy infrastructure in the Gulf region.
“Expected fuel price hikes and weakening macroeconomic indicators are contributing to negative sentiment,” he added.
The decline came after Qatar’s main gas hub in Ras Laffan Industrial City sustained extensive damage following missile strikes, according to QatarEnergy. The attacks sparked fires at liquefied natural gas facilities, though authorities later confirmed that the situation had been brought under control without any casualties.
The escalation has heightened concerns over global energy supply disruptions. Oil prices surged more than 5% during the day, with Brent crude crossing $112 per barrel at its peak.
Meanwhile, US President Donald Trump warned Iran against further strikes on Gulf energy installations, threatening retaliation if attacks continue.
The crisis also affected other regional facilities, including Saudi Arabia’s Ras Tanura refinery, which has faced repeated disruptions during the conflict.
According to the International Energy Agency, Gulf oil output has dropped significantly, further intensifying concerns about global supply shortages and inflationary pressures.
On Wednesday, however, the KSE-100 Index had posted a strong recovery, gaining over 4,200 points amid short-term optimism in the market.