The Pakistan Stock Exchange (PSX) suffered a sharp sell-off on Tuesday as renewed United States-Iran tensions rattled investors. The benchmark KSE-100 Index lost more than 6,400 points during the trading session.
The market opened in negative territory and dropped 3,464.89 points by 10am. The index fell to 176,462.15 points from the previous close of 179,927.04.
Trading remained volatile throughout the day. However, selling pressure intensified after 2:30pm, pushing the benchmark lower. The KSE-100 eventually closed at 173,518.81 points, down 6,408.23 points or 3.56 percent.
Geopolitical Tensions Shake Investor Confidence
The market decline followed renewed fighting between the United States and Iran. Investors reacted cautiously as concerns grew over regional stability and global energy supplies.
Meanwhile, global oil prices climbed to their highest level in four weeks. Brent crude rose to $86.19 per barrel, while US West Texas Intermediate reached $79.67 per barrel.
Topline Securities said the sell-off reflected growing uncertainty after reports of the collapse of the interim peace arrangement. The brokerage noted that rising geopolitical risks triggered broad-based selling across the market.
Banking, Cement Stocks Lead Decline
According to Topline Securities, United Bank Limited, Engro Holdings, Fauji Fertiliser Company, Lucky Cement and Meezan Bank recorded the largest losses. Together, these companies erased 2,057 points from the benchmark index.
AKD Securities Director of Research Awais Ashraf also linked the decline to the worsening geopolitical situation. He said cyclical sectors faced the heaviest losses as investors reassessed medium-term risks.
The PSX had already closed lower on Monday as uncertainty surrounding the Strait of Hormuz weighed on investor sentiment. Analysts also noted that profit-taking after the recent market rally intensified Tuesday’s decline.
