Pakistan’s stock market suffered a sharp sell-off as renewed US-Iran attacks and soaring oil prices heightened concerns over inflation, external-sector pressures and economic stability.
The Pakistan Stock Exchange (PSX) came under intense selling pressure as renewed US-Iran attacks severely dented investor confidence, while a sharp rise in international oil prices added to concerns about Pakistan’s macroeconomic outlook.
The benchmark KSE-100 Index plunged 3,078 points, or 1.79%, to close at 168,865, after falling as much as 3,471 points intraday. The steep decline reflected broad-based risk aversion as investors moved to reduce exposure amid heightened geopolitical uncertainty.
The escalation in tensions between the United States and Iran raised concerns over a prolonged disruption to global oil supplies. For Pakistan, higher international oil prices could increase pressure on the country’s import bill, inflation and external account, while also creating additional challenges for overall macroeconomic stability.
Selling by local institutional investors further intensified the market decline, with participants aggressively trimming positions as geopolitical risks increased. The pressure was visible across several major index-heavy stocks, contributing to the sharp fall in the benchmark index.
MEBL, FFC, PPL, OGDC and HUBC were among the biggest negative contributors during the session. Collectively, the five stocks dragged the KSE-100 Index down by approximately 1,004 points.
Despite the heavy decline, trading activity remained active as investors responded to the rapidly changing geopolitical environment. Total market volume reached 628 million shares, while traded value stood at approximately PKR 27 billion.
CNERGY emerged as the volume leader, with around 99.4 million shares changing hands during the session.
Market sentiment is likely to remain closely linked to developments in the US-Iran conflict and movements in international crude prices. Any further escalation could increase concerns over Pakistan’s energy import costs and external financing requirements, while signs of de-escalation could provide some relief to risk sentiment.