KARACHI: The KSE-100 Index experienced a sharp decline, losing 1,613 points to close at 150,399, with a trading volume of 469 million shares. The top performing stocks in terms of price change included CNERGY, ATRL, and SSGC, while HCAR, SSOM, and AIRLINK were the top decliners. The trading activity was primarily concentrated in the refinery, technology, and power sectors.

According to Taurus Securities Limited, the market's downturn coincides with a complex economic backdrop including geopolitical tensions and domestic economic measures. Former President Donald Trump has announced potential strikes on Iranian infrastructure if the Strait of Hormuz is not reopened, while also indicating a possible deal with Iran. Meanwhile, Iran's Foreign Minister has denied reports of refusing talks mediated by Pakistan, which has presented three key demands in ongoing discussions in Urumqi.

In the domestic economic landscape, OPEC+ has tentatively agreed on a theoretical oil output hike amid the uncertainty caused by the ongoing situation in Iran. The International Monetary Fund (IMF) has urged Pakistan to address fuel price distortions in light of subsidy pressures. Prime Minister Shehbaz Sharif has announced a monthly subsidy of Rs70,000 for transporters to mitigate price hikes, while simultaneously reducing petrol prices to Rs378 per liter by cutting levies.

Additionally, the State Bank of Pakistan (SBP) is considering a rate hike unless an anticipated IMF deposit arrives in time. The IMF has also been assured of timely power tariff hikes, and Pakistan is preparing to repay a $3.5 billion loan to the UAE. These developments occur amidst concerns that Pakistan's rising fuel costs could push inflation rates over 15%, potentially triggering further policy rate hikes.