Lead
The Pakistan Stock Exchange (PSX) saw a dramatic decline on Tuesday, with its benchmark KSE-100 index losing more than 6,400 points as equities experienced a massive meltdown amid renewed fighting between the United States and Iran, as reported by Dawn.
According to Dawn, the KSE-100 index opened in the red and had lost 3,464.89 points by 10am, dropping to 176,462.15 points from the previous close of 179,927.04. After minor fluctuations, the index saw a steep decline after 2:30pm, closing at 173,518.81 points, down 6,408.23 points (3.56 per cent) from the previous close.
Coverage Comparison
Dawn's reporting on the market decline varied slightly in the figures and timing reported. One version of the story noted the index lost more than 6,000 points during intraday trade, with the index down 6,088.03 points (3.38 per cent) by 3pm, dropping to 173,839.01 points. The other reported the final closing loss of 6,408.23 points. Both versions attributed the decline to the same underlying causes: renewed US-Iran fighting, the US naval blockade of Iran, and heightened uncertainty in the Strait of Hormuz.
Oil price figures also differed between the two reports, likely due to intraday fluctuations. At 12:51pm PKT, Brent crude futures were up $2.74, or 3.29pc, at $86.04 per barrel, while US West Texas Intermediate (WTI) crude rose $2.21, or 2.83pc, to $80.35 a barrel. By 5pm PKT, Brent had risen further to $86.19 per barrel, up $2.89 or 3.47pc, while US WTI crude was at $79.67, up $1.53 or 1.96pc. Both reports noted oil prices were at their highest since the two countries signed a memorandum of understanding to end the war on June 18.
Key Claims
- PSX benchmark index loses over 6,400 points: The KSE-100 index closed at 173,518.81 points, down 6,408.23 points (3.56 per cent), as reported by Dawn.
- Global oil prices hit four-week high: Oil prices rose as the US reimposed its naval blockade of Iran and both countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows, according to Dawn.
- US reimposed naval blockade of Iran: This was cited by Dawn as a key factor in the market's decline.
- Intraday oil price movements: At 12:51pm PKT, Brent crude was up $2.74 (3.29pc) at $86.04, and US WTI rose $2.21 (2.83pc) to $80.35; by 5pm PKT, Brent was up $2.89 (3.47pc) at $86.19, and US WTI rose $1.53 (1.96pc) to $79.67, as reported in two Dawn updates.
- Broad-based decline with cyclical sectors hit hardest: Awais Ashraf, director of research at AKD Securities, told Dawn that the decline is broad-based, with cyclical sectors witnessing the sharpest percentage losses amid heightened uncertainty over the medium-term outlook due to the emerging geopolitical situation.
- Investor sentiment deteriorated: Topline Securities Ltd attributed the sell-off to heightened geopolitical tensions after the reported collapse of the interim peace arrangement between the US and Iran, with reports of US airstrikes and Iranian targeting of oil tankers.
- Key contributors to the index decline: Topline noted that United Bank Limited (UBL), Engro Holdings, Fauji Fertiliser Company, Lucky Cement and Meezan Bank collectively shaved 2,057 points off the benchmark index.
- Market context: The PSX had come under pressure on Monday, with the KSE-100 index closing at 179,927, down 2,314 points (1.27pc), amid nervousness over developments in the Strait of Hormuz and broad-based profit-taking, as reported by Dawn.