PSX dives 4,600 points over ME tensions
Panic selling enveloped the Pakistan Stock Exchange (PSX) on Wednesday as investors reacted to the escalating US-Iran conflict, wiping out a large part of recent gains in a single session. The benchmark KSE-100 index plunged 4,626.18 points, or 2.48%, to end the day's trading at 181,629.37.
The bourse opened sharply lower after fresh US military strikes against Iran and tighter sanctions on Iranian crude exports. Within minutes of the opening bell, the index shed nearly 2,500 points, reflecting broad-based selling as traders shifted to safe-haven assets.
The losses deepened in the latter half after US President Donald Trump declared that an interim deal aimed at ending the war with Iran was over. The remarks reignited fears of a prolonged conflict, drove global crude prices sharply higher and accelerated the flight from risk assets across global markets.
In the local market, panic selling intensified and the KSE-100 nosedived to 179,510 at around 2 pm, reflecting a staggering loss of over 6,700 points. However, bargain hunting emerged in the final hour, helping the market recover around 2,100 points before the closing bell.
Heavy stock liquidation was witnessed across major sectors, particularly oil and gas exploration, commercial banks, fertiliser, cement, power generation and technology, where investors reduced exposure amid heightened uncertainty.
Ahmed Sheraz, an equity trader at KTrade Securities, said the KSE-100 recorded a sharp correction amid broad-based selling pressure, although trading activity remained robust with 572 million shares changing hands, reflecting healthy participation despite high volatility.
He said commercial bank, cement, oil and gas, fertiliser, investment bank, power and technology stocks led the decline, with United Bank, Fauji Fertiliser, Engro Holdings, Lucky Cement, Hub Power, HBL, Pakistan Petroleum and OGDC contributing the most to the losses.
Looking ahead, Sheraz said market direction would largely depend on developments in the Middle East, particularly around the Strait of Hormuz and their impact on oil prices. While geopolitical uncertainty may keep volatility elevated in the near term, any signs of de-escalation could help restore investor confidence and support market recovery.