KSE-100 Drops Nearly 2,500 Points
The Pakistan Stock Exchange came under strong selling pressure on Wednesday after fresh US airstrikes on Iran shook investor confidence.
The benchmark KSE-100 Index fell nearly 2,500 points in the opening minutes of trading. At 9:34am, the index was hovering at 183,758.85 points, down 2,496.70 points, or 1.34 percent.
The sharp decline came as regional tensions rose after the United States launched new strikes against Iran and reimposed sanctions on Iranian crude sales.
Major Sectors Trade in Red
Selling pressure was seen across key sectors. Automobile assemblers, cement, commercial banks, fertiliser, oil marketing companies, and power generation stocks all faced losses.
Index-heavy shares also traded in the red. These included HUBCO, MARI, OGDC, PSO, SSGC, SNGPL, and WAFI.
The latest fall came a day after the PSX closed lower due to profit-taking. On Tuesday, the KSE-100 Index settled at 186,255.55 points, down 1,199.14 points, or 0.64 percent.
Despite the correction, expectations of strong corporate earnings helped limit losses during the previous session.
Global Markets React to Middle East Crisis
International markets also reacted to the rising US-Iran tensions. The US military launched a fresh wave of strikes against Iran after three tankers were reportedly hit by projectiles in the Strait of Hormuz.
Washington also revoked a licence that allowed Iran to sell oil. The move added pressure to an already fragile ceasefire.
US oil prices jumped nearly 3 percent in early trade. The US dollar also stayed near its highest levels of the week against several major currencies.
Investors are now watching global oil prices, Middle East security risks, and the Federal Reserve’s next move. Market bets for a September US rate hike have also increased.
The minutes of the Federal Open Market Committee’s June meeting are expected to provide more direction on the interest rate path.
