The benchmark KSE-100 Index shed 312.18 points or 0.48% to settle at 64,349.6 levels at the closing of the market.

The KSE-30 Index shed 49.20 points or 0.23% to reach 21,566.93 levels at the closing of the trading session.

Earlier, the market got off to a strong start, gaining 500 points to cross 65,000 points.

However, the momentum eventually subsided bringing the 100-Index back down to 64,700 points in the midday trading.

Meanwhile, international oil prices jumped in the first session of the New Year, boosted by the chances of Middle East supply disruptions after a naval clash in the Red Sea, as well as hopes of strong holiday demand and an economic stimulus in China, the top importer of crude.

Brent crude rose $1.28, or 1.7%, to $78.32 a barrel while US West Texas Intermediate crude was at $72.69 a barrel, up $1.04, or 1.5%.