Karachi: The KSE-100 Index witnessed a significant decline, falling by 11,016 points to close at 146,480, with a trading volume of 614 million shares. The market activity showed notable performance changes, with PGLC topping the list in price gains, while YOUW, UNITY, and BOP registered as the leading decliners. The sectors experiencing the most activity were Power, Technology, and Banks.

According to Taurus Securities Limited, the current geopolitical events, such as the ongoing conflict involving Iran and its impact on global oil markets, have led to increased volatility in financial markets. The crisis has prompted various international responses, including defensive missions by France and allies to reopen the Strait of Hormuz, and the United States considering relief measures for Russian oil. These developments come amid heightened warnings from the Iranian Foreign Ministry for oil tankers transiting the Strait of Hormuz.

The economic implications have been notable, with Saudi Arabia reducing its oil output and the State Bank of Pakistan holding the policy rate at 10.50 percent due to oil-related risks. Meanwhile, inflation is projected to remain above 7 percent until the fiscal year 2027, as per the State Bank of Pakistan. Amidst these challenges, businesses have expressed concern over the high interest rates impacting economic performance during wartime, while a Senate panel is set to investigate the beneficiaries of rising fuel prices.

In response to the energy market turmoil, oil companies are seeking assistance from the Oil and Gas Regulatory Authority and urging the State Bank of Pakistan to permit temporary CIF imports. Despite the disruptions, fuel sales saw a 13 percent annual increase in February, and the supply lines for urea and DAP fertilizers remain open. The government is also focusing on the future, with a 5G spectrum auction scheduled and significant investments planned by entities such as FATIMA and Sazgar.