What began as a nervous start turned into a full-scale rout on the Pakistan Stock Exchange (PSX) on Wednesday, as a wave of panic selling snowballed into the closing hours after fresh remarks by United States President Donald Trump shattered hopes of a diplomatic breakthrough with Iran. Investors rushed for exit, sending the benchmark KSE-100 Index crashing more than 4,600 points in one of its sharpest single-day declines in recent weeks.
The index had already opened sharply lower amid renewed US military action against Iran and tougher sanctions on Iranian crude exports, prompting traders to seek safety and pushing the market sharply into the red. The bourse came under intense pressure in the latter half after Trump declared that the interim deal aimed at ending the war with Iran was “over.” The remarks reignited fears of a prolonged conflict, driving oil sharply higher and triggering a flight from risk assets across markets.
The index then tumbled 4,626.18 points, or 2.48%, to settle at 181,629.37, after touching an intraday high of 185,215.56 and plunging to a low of 179,504.35.
Heavy liquidation was witnessed across almost all major sectors, particularly oil and gas exploration, commercial banks, fertiliser, cement, power generation and technology, as investors reduced exposure amid heightened uncertainty.
Read: PSX tumbles nearly 1,200 points on broad-based profit-taking
As per trend in Asian equities, the market is likely to remain highly volatile in the coming sessions, with investors closely tracking geopolitical developments and movements in international oil prices before rebuilding positions.
“Geopolitical jitters sparked a sell-off as the KSE-100 tumbled 4,626 points,” said Topline Securities in its market review. It remarked that the local bourse witnessed a bloodbath as panic selling gripped the market following renewed geopolitical tensions in the Middle East. “Investor sentiment turned sharply negative after Trump declared the ceasefire with Iran effectively over, while fresh US strikes on Iran reignited fears of a broader regional conflict,” it said.
The escalation also pushed international crude oil prices higher, further dampening investor sentiment and triggering a broad-based risk-off move across the market. The KSE-100 index came under intense selling pressure, touching the intraday low of 6,751 points before settling at 181,629, down 4,626 points (-2.48%), added Topline.
Overall, trading volume increased to 1.55 billion shares from 984.8 million a day ago while the value of traded shares stood at Rs62.4 billion.
Shares of 496 companies were traded, of which 87 stocks climbed, 396 fell, and 13 remained unchanged. WorldCall Telecom was the volume leader with trading in 220.5 million shares, gaining Rs0.05 to close at Rs1.35.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More