ISLAMABAD: Pakistan’s stock market recorded heavy losses on Wednesday after US President Donald Trump declared the interim agreement with Iran “over,” unsettling global investors and weakening market confidence.
The benchmark KSE-100 Index dropped 6,449.34 points, or 3.46%, closing at 179,806.21 points. Previously, the index had settled at 186,255.55 points, reflecting widespread selling across major sectors.
Investors reacted quickly as fears of renewed geopolitical tensions increased. Consequently, traders reduced exposure to equities and shifted toward safer investment options.
Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa said Trump’s remarks significantly affected investor sentiment. He explained that the statement suggesting the ceasefire had effectively ended frightened both oil and equity markets.
Furthermore, Mustafa noted that the market’s sharp decline reflected panic selling after stocks had recently reached record highs. He added that investors feared prolonged instability could damage regional and global economic prospects.
Meanwhile, international financial markets also weakened as oil prices climbed more than five percent during Wednesday’s trading session. Rising energy prices increased concerns about inflation and slower global economic growth.
Trump made the remarks in Ankara before attending a NATO summit. Moreover, he stated that he had no interest in further engagement with Tehran. He described negotiations with Iran as a waste of time.
European markets also suffered substantial losses. The STOXX 600 Index fell 1.6%, marking its largest single-day decline since mid-March. Likewise, US stock futures slipped between 0.8% and 1.2%, reflecting cautious investor sentiment.
Additionally, the VIX volatility index surged nearly 13%, recording its biggest daily increase in more than one month. However, the index remained below the elevated levels recorded in March.
Market analysts observed that global equities had already faced pressure during recent weeks. Investors increasingly questioned the high valuations of semiconductor and artificial intelligence companies. Therefore, Trump’s comments accelerated an existing wave of selling across international financial markets.
