Selling pressure gripped the Pakistan Stock Exchange (PSX) on Wednesday as renewed US-Iran hostilities raised concerns over supply disruptions. The benchmark KSE-100 Index dropped nearly 1,300 points during the opening minutes of trading.
At 10am, the index stood at 175,193.34, down 1,273.65 points, or 0.72%.
Investors moved cautiously as uncertainty surrounding the latest military developments weighed on market sentiment.
Key Sectors Face Selling Pressure
Major sectors recorded significant selling during early trading.
These included automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies and power generators.
Several index-heavy stocks also traded in negative territory.
HUBCO, MARI, OGDC, PPL, HBL, MCB, MEBL and NBP were among the major stocks facing selling pressure.
The decline followed another difficult session on Tuesday.
The KSE-100 Index closed at 176,466.99, losing 508.69 points, or 0.29%.
Renewed uncertainty surrounding the US-Iran conflict and fluctuations in international oil prices had already kept investors cautious.
Global Markets Also Decline
Meanwhile, Asian markets also fell sharply on Wednesday as renewed US attacks on Iran pushed oil prices higher. A bond market-driven selloff added further pressure to global equities.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.5%. South Korea’s KOSPI fell more than 3%, while Japan’s Nikkei 225 dropped 2.6%.
S&P 500 e-mini futures also declined 0.1%. On Wall Street, the S&P 500 fell 0.7% during the previous session.
The Nasdaq Composite declined 1% as rising government bond yields weighed on stocks.
Investors Watch US Interest Rate Outlook
Markets are also responding to fresh US economic data and expectations surrounding Federal Reserve policy. Data from the Institute for Supply Management showed that US manufacturing activity slowed in August.
However, the sector remained in expansion territory despite weaker new orders. Traders increasingly expect the Federal Reserve to raise interest rates at its upcoming meeting. The central bank is scheduled to conclude its two-day meeting on September 16.
According to CME Group’s FedWatch tool, markets were pricing a 67% probability of a 25-basis-point rate increase.
That probability had stood at 39.6% one week earlier.
Consequently, higher interest rate expectations, rising oil prices and renewed geopolitical tensions are adding pressure to global markets.
For Pakistan, the latest US-Iran escalation has further increased investor concerns over external supply risks and market stability.
