The Pakistan Stock Exchange (PSX) witnessed heavy selling pressure on Wednesday as renewed geopolitical tensions in the Middle East rattled investor sentiment, dragging the benchmark KSE-100 Index down by more than 1,900 points during intraday trading.
Trading began on a bearish note, with the KSE-100 Index losing over 1,600 points within minutes of the opening bell. Selling intensified throughout the morning, pushing the index down by more than 1,900 points at one stage.
By 12:00 pm, the benchmark index was trading at 175,913.47 points, down 1,710.41 points, or 0.96 percent, from the previous session’s close.
The decline was broad-based, with significant losses recorded across major sectors, including automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation stocks.
The latest downturn followed Tuesday’s weaker session, when investors booked profits after Monday’s strong rally. Despite buying interest in refinery stocks on expectations of policy support, the KSE-100 Index closed 638.45 points, or 0.36 percent, lower at 177,623.88 points.
Investor confidence was shaken after fresh military strikes by the United States and Saudi Arabia targeted Iran-backed groups in Iraq, raising concerns about a possible escalation in regional tensions. The developments renewed fears over the security of global energy supply routes, particularly through the Strait of Hormuz.
Oil prices surged following the attacks, with Brent crude rising 3.2 percent to $86.79 per barrel, while West Texas Intermediate (WTI) crude gained 3.3 percent to $81.91 per barrel, adding to concerns over inflation and higher energy costs.
The negative sentiment extended beyond Pakistan, as stock markets across Asia also came under pressure. South Korea’s KOSPI fell sharply, Taiwan’s benchmark index dropped around 5 percent, while Japan’s Nikkei declined 2.6 percent. Technology stocks led the regional losses as investors grew cautious ahead of major corporate earnings announcements and the U.S. Federal Reserve’s upcoming monetary policy decision.
Market analysts said continued geopolitical uncertainty and rising oil prices are likely to keep investors cautious in the near term, with volatility expected to persist across regional equity markets.
