Market Ends in the Red
The Pakistan Stock Exchange (PSX) closed lower on Wednesday, March 11, 2026, erasing an early surge of over 2,000 points as a sudden jump in global oil prices triggered a sell-off. The benchmark KSE-100 index finished at 155,858.47 points, down 318.65 points or 0.2% from the previous close of 156,177.12 points.
Volatile Trading Session
The trading session was marked by sharp volatility. The index hit an intraday high of 158,624.51 points during the morning rally before plummeting to a low of 155,652.35 points. The dramatic reversal was squarely attributed to shifting dynamics in the international oil market.
Oil Prices Reverse on Geopolitical Tension
Early session optimism, fueled by falling oil prices and positive domestic indicators, was abruptly undone. Prices reversed after reports that a cargo vessel was struck by an unknown projectile in the critical Strait of Hormuz. This incident reignited supply fears, pushing Brent crude futures up 0.7% to $88.39 a barrel and US West Texas Intermediate up 1.2% to $84.43.
“It was reported that a cargo ship was hit in the Hormuz, causing oil prices to reverse earlier losses,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “At close, oil was up over 2%, reigniting fear of higher oil prices and causing participants to take risk off.”
Early Rally Driven by Positive Factors
Prior to the downturn, the market had rallied strongly. Analysts cited several supportive factors:
- Lower global crude oil prices in early trading.
- Upbeat data showing remittances rose 5.2% year-on-year to $3.3 billion.
- Government assurances on renegotiating the IMF deal, lowering taxes, and securing crude supplies.
- Institutional interest in oversold stocks.
Broader Regional Context
The PSX movement occurred amid a choppy relief rally across broader Asian markets. Shares initially bounced on news of a potential record release of oil reserves by the International Energy Agency (IEA). However, sentiment remained cautious due to contradictory signals from the Middle East, leaving investors uncertain about the impact on global inflation and economic growth. Chinese stocks closed higher, led by defensive and new energy sectors.
