The Pakistan Stock Exchange (PSX) came under strong selling pressure on Tuesday as rising tensions in the Middle East weighed on investor sentiment. The benchmark KSE-100 Index lost nearly 1,000 points by the close of trading.
During the session, the KSE-100 Index fell as much as 1,904.31 points, or 1.10%, to 171,731.76 points at around 1:39 pm, compared with the previous close of 173,636.07 points.
The index touched an intraday low of 171,490.63 points around 1:30 pm before recovering some of its losses later in the session.
At the close, the KSE-100 Index settled at 172,642.16 points, down 993.91 points, or 0.57%, from the previous session.
Market sentiment remained under pressure as investors continued to monitor developments in the Middle East, particularly the prolonged tensions between the United States and Iran.
Awais Ashraf, Director of Research at AKD Securities, said the ongoing regional tensions were affecting investor confidence. He also pointed to rising international oil prices as another factor contributing to market uncertainty.
However, Ashraf noted that Pakistan’s relatively strong macroeconomic position could provide some cushion against external shocks. He also highlighted the country’s recent access to the international Eurobond market, which has provided policymakers with greater financial flexibility compared with previous crises.
Meanwhile, fresh regional developments added to concerns in global markets. Reports of Houthi attacks targeting Saudi Arabia’s energy infrastructure further heightened fears of disruptions to regional energy supplies.
Oil prices also moved higher on Tuesday. Brent crude rose to $99.22 per barrel, reaching its highest level since July 24, while US West Texas Intermediate (WTI) crude climbed to $94.60 per barrel, its highest level since June 8.
The rise in oil prices and escalating geopolitical risks prompted investors to adopt a cautious approach and book profits across the market.
The PSX had already experienced significant losses in the previous session. On Monday, the KSE-100 Index declined by 1,692.74 points and closed at 173,636.08 points after failing to sustain its earlier recovery.
Investors are now closely watching developments in the Middle East and international oil markets, which could continue to influence trading activity and sentiment at the Pakistan Stock Exchange in the coming sessions.
