Hormuz tensions wipe out over 6,400 points at PSX

Massive selling pressure enveloped the Pakistan Stock Exchange (PSX) on Tuesday as escalating United States-Iran tensions and soaring oil prices sparked panic selling, dragging the benchmark KSE-100 Index down. It closed at 173,518.82, down 6,408.23 points, or 3.56%, from the previous close of 179,927.05, as selling intensified throughout the session.

The market remained under pressure from the opening bell, with investors offloading shares across the board amid fears that the worsening geopolitical situation could disrupt global energy supplies and weigh on Pakistan’s already fragile economic outlook.

The KSE-100 touched an intraday high of 178,112.05 before the pace of selling accelerated in the latter part of the session. Broad-based liquidation across sectors pushed the benchmark index to an intraday low of 173,349.42, reflecting heightened volatility and persistent selling pressure.

The sell-off mirrored weakness across Asian equity markets after US President Donald Trump announced the reinstatement of a naval blockade on Iran and said the US would receive a 20% levy on cargo shipped through the Strait of Hormuz, raising fears of disruptions to global energy supplies. The developments pushed crude oil prices to a one-month high, prompting investors worldwide to adopt a risk-off stance.

Market participants said the sharp jump in crude prices and fears of a wider regional conflict prompted investors to reduce exposure to equities, with heavyweight banking, exploration and production, fertiliser, cement and automobile stocks bearing the brunt of the selling.

Read: ME escalation triggers sharp sell-off at PSX

KTrade Securities equity trader Ahmed Sheraz observed that the KSE-100 index witnessed a sharp selloff, closing at 173,518 points, down 6,408 points (-3.56% DoD), as investor sentiment deteriorated amid fears of a prolonged regional conflict. Rising concerns over the apparent violation of the US-Iran ceasefire, coupled with escalating tensions between Saudi Arabia and the Houthis, triggered broad-based risk aversion, resulting in one of the steepest declines in recent sessions.

Despite the sharp correction, trading activity remained robust, with 409 million shares traded.

Selling pressure was widespread, with every major sector ending in negative territory. Commercial banks, cement, oil and gas, fertilisers, investment banks, and power stocks all came under heavy pressure with index heavyweights such as UBL, Engro Holdings, Fauji Fertiliser, Lucky cement, Meezan Bank, Oil & Gas Development Company, HBL, PPL, and MCB Bank among the key contributors to the benchmark’s decline, highlighting the broad-based nature of the selloff.

Sheraz believed that the near-term direction will remain heavily dependent on geopolitical developments in the Middle East. As long as uncertainty surrounding the US-Iran conflict and regional tensions persists, volatility is likely to remain elevated. However, any signs of de-escalation or renewed diplomatic progress could help restore investor confidence and support a technical rebound in fundamentally strong stocks, he added.

Overall trading volume increased to 912.6 miilion shares from Monday’s total of 845.2 million while the value of traded shares stood at Rs45.6 bilion. In ready market, shares of 498 companies were traded, of which only 40 shares closed higher, 439 fell, and 19 remained unchanged.

Cnergyico Pk was the volume leader with trading in 84.6 million shares, losing Rs0.37 to close at Rs9.68.

Massive selling pressure enveloped the Pakistan Stock Exchange (PSX) on Tuesday as escalating tensions between the United States and Iran triggered widespread panic selling, dragging the benchmark KSE-100 Index down by more than 4,200 points during intraday trading.

The sharp decline mirrored weakness across Asian equity markets after US President Donald Trump announced the reinstatement of a naval blockade on Iran and said the US would receive a 20% levy on all cargo shipped through the Strait of Hormuz. The developments pushed oil prices to a one-month high and fuelled concerns over global energy supplies and inflation.

The market opened sharply lower and remained under pressure throughout the session as investors dumped equities amid heightened geopolitical uncertainty and a surge in international oil prices.

 
At 9:54am, the KSE-100 index had already shed 3,733.34 points, or 2.07%, to 176,193.70, reflecting broad-based selling from the opening bell. By 12:44pm, the index was trading at 175,683.38, down 4,243.66 points, or 2.36%, from the previous close of 179,927.04.

The index moved between an intraday high of 178,112.04 and a low of 174,615.03, highlighting elevated volatility. Meanwhile, total traded volume reached 242.26 million shares, with turnover amounting to Rs20.44 billion.

Investors adopted a risk-off strategy as fears of a wider Middle East conflict overshadowed positive domestic triggers. Rising oil prices are also seen as a negative for Pakistan’s import-dependent economy, adding to concerns over inflation, the external account and corporate profitability.

Volatility is likely to persist as investors closely monitor geopolitical developments and movements in international oil prices.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More