Hormuz tensions send PSX tumbling over 4,200 points

KSE-100 comes under heavy pressure as geopolitical risks dent investor confidence

KARACHI:

Massive selling pressure enveloped the Pakistan Stock Exchange (PSX) on Tuesday as escalating tensions between the United States and Iran triggered widespread panic selling, dragging the benchmark KSE-100 Index down by more than 4,200 points during intraday trading.

The sharp decline mirrored weakness across Asian equity markets after US President Donald Trump announced the reinstatement of a naval blockade on Iran and said the US would receive a 20% levy on all cargo shipped through the Strait of Hormuz. The developments pushed oil prices to a one-month high and fuelled concerns over global energy supplies and inflation.

The market opened sharply lower and remained under pressure throughout the session as investors dumped equities amid heightened geopolitical uncertainty and a surge in international oil prices.

Read: ME escalation triggers sharp sell-off at PSX

At 9:54am, the KSE-100 index had already shed 3,733.34 points, or 2.07%, to 176,193.70, reflecting broad-based selling from the opening bell. By 12:44pm, the index was trading at 175,683.38, down 4,243.66 points, or 2.36%, from the previous close of 179,927.04.

The index moved between an intraday high of 178,112.04 and a low of 174,615.03, highlighting elevated volatility. Meanwhile, total traded volume reached 242.26 million shares, with turnover amounting to Rs20.44 billion.

Investors adopted a risk-off strategy as fears of a wider Middle East conflict overshadowed positive domestic triggers. Rising oil prices are also seen as a negative for Pakistan's import-dependent economy, adding to concerns over inflation, the external account and corporate profitability.

Volatility is likely to persist as investors closely monitor geopolitical developments and movements in international oil prices.