PSX turns volatile after retaliatory US strikes

KSE-100 index sheds 903 points amid wild swings, cautious sentiment

KARACHI:

Trading at the Pakistan Stock Exchange (PSX) remained highly volatile on Wednesday as investors reacted cautiously to the escalating geopolitical tensions, triggering sharp intra-day fluctuations in the benchmark KSE-100 index.

The market opened on a positive note, with the index gaining 25.95 points (+0.02%) to reach 170,356.51 at 9:44 am. However, investor sentiment stayed weak amid concerns over the Middle East situation following reports that a US army Apache helicopter was downed near the Strait of Hormuz, which prompted retaliatory US strikes on Iranian targets and raised fears of a broader regional conflict.

Such developments fuelled uncertainty across global financial markets and triggered a risk-off trading mood. The KSE-100 touched the intra-day high of 170,729.57 points and the low of 169,346.38 before coming under sustained pressure in the latter part of the day. At close, the index shed 903.12 points, or 0.53%, to settle at 169,427.44.

According to Topline Securities, the local bourse witnessed a volatile trading session, as investors navigated sharp swings in market sentiment. The benchmark index saw turbulence throughout the day, recording the intra-day high of 399 points and the intra-day low of 984 points, reflecting heightened uncertainty and cautious investor behaviour.

Despite intermittent recovery attempts, sustained selling pressure across key sectors kept the market under strain, dragging the index down by 903 points at the end of trading. The wide intra-day range reflected a tug of war between cautious optimism and lingering concerns amid fragile sentiment as participants assessed macro cues while positioning themselves ahead of key triggers.

Heavyweight stocks including Meezan Bank, International Steels, Pakistan Oilfields, International Industries and Interloop collectively added 183 points to the benchmark. On the other hand, Bank AL Habib, United Bank, MCB Bank, Engro Holdings and Oil & Gas Development Company weighed on performance, wiping off 464 points, Topline added.

KTrade Securities' equity trader Ahmed Sheraz observed that cautious investor sentiment prevailed throughout the session amid weak global market cues. Overnight losses in US equities and negative trends across major Asian markets weighed on risk appetite, keeping PSX investors on the sidelines.

Trading activity remained moderate while the most actively traded stocks on the index were TPL REIT Fund I, The Bank of Punjab and Maple Leaf Cement. On the sectoral front, the decline was primarily driven by commercial banks, investment banks and oil & gas exploration companies.

Meanwhile, international oil prices were broadly stable. Although crude prices briefly eased after signals from the US administration suggested that negotiations regarding Middle East tensions were underway, the overall geopolitical situation remained fluid. Going forward, market sentiment was likely to remain sensitive to developments in the region, trends in global equity markets, the FY27 budget and movements in oil prices, Sheraz predicted.

According to Arif Habib Limited (AHL), buying interest emerged below the 170k level but the KSE-100 closed down by 0.53%. On the index, 32 shares rose while 67 fell with Meezan Bank (+1.2%), International Steels (+1%) and Pakistan Oilfields (+0.81%) being the biggest index contributors. On the other side, Bank AL Habib (-2.08%), UBL (-0.79%) and MCB (-1.66%) were the largest index drags.

Meanwhile, remittances for May 2026 rose 15% year-on-year to an all-time high of $4.3 billion. In a sign of tense neighbourly relations, Afghanistan said Pakistani strikes in its eastern provinces caused casualties. "The KSE-100 is expected to find buyers below the 170k level," AHL wrote.

Cumulatively, trading volumes jumped to 791.6 million shares compared with Tuesday's total of 767.5 million. The value of traded shares stood at Rs25.5 billion.

Shares of 488 companies were traded. Of these, 191 stocks closed higher, 258 fell and 39 remained unchanged.

TPL Properties led the volumes chart with trading in 64 million shares, rising Rs0.11 to close at Rs11.42. Foreign investors sold shares worth Rs1.1 billion, the National Clearing Company reported.