Broad-based selling pushes KSE-100 deeper below 180,000-point level
KARACHI: Massive selling pressure gripped the Pakistan Stock Exchange on Tuesday as escalating tensions between the United States and Iran triggered widespread investor concern, sending the benchmark KSE-100 Index down by more than 3,600 points during early trading.
At 9:43am, the index stood at 176,309.50 points, reflecting a decline of 3,617.54 points, or 2.01 percent, from the previous close.
Investors sold shares across major sectors, including automobile assembly, cement, commercial banking, oil and gas exploration, oil marketing and power generation. Index-heavy companies such as Mari Energies, OGDC, Pakistan Petroleum Limited, HUBCO, MCB Bank, Meezan Bank and United Bank Limited traded sharply lower.
The latest fall extended Monday’s bearish trend, when growing instability in the Middle East pushed the KSE-100 below the 180,000-point mark. The index had lost 2,314.73 points, or 1.27 percent, to close at 179,927.05.
Oil surge revives inflation fears
Meanwhile, global markets remained volatile after US President Donald Trump announced the restoration of a blockade on Iranian shipping and proposed a 20 percent charge on cargo passing through the Strait of Hormuz.
Brent crude futures climbed 2.6 percent to $85.50 per barrel, reaching their highest level since mid-June. Earlier, oil prices had surged more than 9 percent as renewed conflict restricted commercial movement through the strategic waterway.
Asian markets delivered mixed results. South Korean shares gained 2.2 percent, Japan’s Nikkei rose 0.2 percent, while US equity futures edged lower.
Additionally, hawkish comments from Federal Reserve Governor Christopher Waller unsettled investors. He warned that persistent inflation could require another interest-rate increase soon. Consequently, market expectations for a 25-basis-point rate hike at the Federal Reserve’s July meeting rose significantly.
