Renewed US-Iran tensions and soaring oil prices trigger panic selling at Pakistan Stock Exchange
KARACHI: The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) suffered a sharp decline on Tuesday, plunging 4,626 points as renewed geopolitical tensions in the Middle East triggered panic selling and widespread profit-taking.
The KSE-100 Index closed at 181,629 points, down 4,626 points, or 2.48%, from the previous session. The benchmark also witnessed extreme volatility, touching an intraday low of 181,504 points after falling as much as 6,751 points during the session.
Middle East Escalation Sparks Market Rout
Investor sentiment deteriorated after US President Donald Trump declared the ceasefire with Iran effectively over, while fresh US strikes on Iran reignited fears of a broader regional conflict.
The renewed tensions pushed international crude oil prices higher, raising concerns over Pakistan’s import bill, inflation outlook and external sector, prompting investors to reduce exposure to equities.
Profit-Taking Intensifies Sell-Off
The sharp market decline was further amplified by broad-based profit-taking, with investors locking in gains following the PSX’s recent record-breaking rally.
Analysts said geopolitical uncertainty overshadowed otherwise supportive domestic macroeconomic indicators, leading to heavy selling across major sectors.
Heavyweight Stocks Lead Decline
Index-heavy stocks United Bank Limited (UBL), Fauji Fertilizer Company (FFC), Engro Holdings (ENGROH), Lucky Cement (LUCK) and Hub Power Company (HUBC) emerged as the biggest drags on the benchmark index.
Collectively, these companies erased approximately 1,528 points from the KSE-100 Index.
Trading Activity Remains Robust
Despite the steep decline, trading activity remained exceptionally strong.
Total traded volume surged to 1.551 billion shares, while the total traded value reached approximately Rs62.4 billion, reflecting heightened investor activity amid increased market volatility.
WorldCall Telecom Limited (WTL) led the volumes chart, with 220 million shares changing hands during the session.
Outlook
Market participants are expected to closely monitor developments in the Middle East, movements in international oil prices and their implications for Pakistan’s economy.
Analysts believe geopolitical developments will remain the primary driver of investor sentiment in the near term, while volatility is likely to persist until greater clarity emerges on the regional situation.