PSX tumbles as oil shock and bond yields hit investor mood

Pakistan's stock market came under heavy pressure as rising oil prices and higher government bond yields sparked fears over imported inflation, external-account stress and weaker industrial activity.

The benchmark KSE-100 Index swung from a slight gain to a sharp intraday loss, dropping to 144,656.97 after closing the previous session above 151,700. Market participants linked the sell-off to the expanding Middle East conflict, disruption risks around key shipping routes and a broader flight from risk across regional markets.

Analysts said foreign outflows added to the bearish mood, while elevated fuel costs and rising inflation expectations deepened concerns about the economy. Weekly inflation data also showed continued price pressure, reinforcing investor caution at a time of global uncertainty.