Rising crude oil prices and renewed US-Iran tensions keep investors cautious despite late-session recovery.

KARACHI: The Pakistan Stock Exchange (PSX) ended lower on Wednesday as renewed geopolitical tensions involving the United States and Iran dampened investor sentiment, pushing the benchmark KSE-100 Index down by nearly 500 points despite a partial recovery in late trading.

The benchmark KSE-100 Index closed at 175,547 points, losing 495 points, or 0.28%, after coming under sustained selling pressure throughout the session. The index touched an intraday low of 1,430 points before recovering part of its losses by the close.

According to market analysts, investor confidence weakened after fresh attacks involving the United States and Iran reignited geopolitical concerns, triggering a rally in international crude oil prices.

The sharp rise in global oil prices renewed concerns about inflationary pressures and their potential impact on Pakistan’s economy, prompting investors to adopt a cautious approach. Although the market managed to recoup a significant portion of its intraday losses, uncertainty surrounding geopolitical developments continued to limit buying interest.

On the index contribution front, ENGROH, LUCK, SYS, HUBC, and PPL emerged as the biggest drags on the benchmark, collectively wiping out approximately 547 points from the KSE-100 Index.

Market participation improved compared with the previous trading session. Total traded volume reached 711 million shares, while the total traded value stood at PKR 25.3 billion.

TSBL led the volume chart, with nearly 143 million shares changing hands during the session.

Market participants are expected to remain focused on developments in the Middle East, international crude oil prices, and domestic economic indicators, all of which are likely to influence investor sentiment in the coming sessions.