Sharp sell-off erases previous session gains
Karachi: Selling pressure returned to the Pakistan Stock Exchange (PSX) on Thursday after Donald Trump signaled continued US strikes on Iran, unsettling investor sentiment. The benchmark KSE-100 Index dropped more than 5,300 points within minutes of opening, reflecting heightened geopolitical anxiety.
By 9:35am, the index stood at 150,167.12, down 5,344.44 points or 3.44%. Consequently, analysts noted that optimism from the previous session’s rally quickly dissipated. Behtari Capital stated that earlier market euphoria had vanished as a ceasefire-driven surge collided with renewed uncertainty.
Moreover, the firm identified a “triple threat” driving the downturn: escalating US-Iran tensions, rising oil prices, and increasing inflation. Pakistan’s CPI inflation climbed to 7.3%, further dampening expectations of a near-term policy rate cut by the State Bank of Pakistan.
Meanwhile, heavy selling hit key sectors, including automobiles, cement, banking, and energy. Major stocks such as MARI, OGDC, POL, PPL, MCB, MEBL, NBP, and UBL traded lower, dragging the index down.
Global markets retreat amid renewed conflict fears
A day earlier, the PSX had rallied strongly, with the KSE-100 Index closing at 155,511.57 points, up 4.55%, driven by hopes of Middle East de-escalation. However, Trump’s latest remarks reversed that momentum.
Internationally, markets also weakened. US stock futures fell 0.67%, while European futures slipped 0.1%. In Asia, MSCI’s regional index dropped 0.75%, and Japan’s Nikkei declined 0.79% amid volatile trading.
Furthermore, investors closely monitored developments around the Strait of Hormuz, a key global energy route. Ongoing disruptions there, coupled with Iran’s regional actions, continued to pressure oil prices and risk assets worldwide.
