The Pakistan Stock Exchange (PSX) witnessed a sharp sell-off on Wednesday as escalating geopolitical tensions in the Middle East rattled investor sentiment, sending the benchmark KSE-100 Index down more than 6,700 points during intraday trading.
The benchmark index dropped 6,713.45 points, or 3.6%, to 179,542.10 by 2:15 pm after opening in negative territory and remaining under pressure throughout the session. Selling intensified in afternoon trade as investors reacted to rising uncertainty in global markets.
The decline was broad-based, with heavy losses recorded across major sectors, including commercial banks, cement, fertiliser, automobile assemblers, oil marketing companies, refineries, chemicals, power generation and cable manufacturers.
Market sentiment weakened following U.S. airstrikes on Iran and the reimposition of sanctions targeting Iranian crude sales, raising concerns over global oil supplies and inflationary pressures. The situation escalated further after Iran’s Revolutionary Guards claimed to have targeted U.S. military facilities in Bahrain and Kuwait in response to the strikes.
The latest losses came a day after the KSE-100 Index ended 1,199.14 points lower at 186,255.55, as investors booked profits near record highs.
Global financial markets also reflected heightened risk aversion. Brent crude futures climbed 3.3% to $76.54 per barrel, while the U.S. dollar strengthened and Treasury yields rose as investors increased expectations of a September interest rate hike by the U.S. Federal Reserve.
Asian equities traded lower amid concerns over the impact of geopolitical tensions on global growth and inflation, adding to the negative sentiment across emerging markets.
