Shafaqna Pakistan: Fresh geopolitical tensions rattled investor sentiment on Wednesday, triggering a sharp sell-off at the Pakistan Stock Exchange (PSX) that briefly sent the benchmark KSE-100 Index down nearly 2,500 points in early trading.
The decline was driven by renewed geopolitical uncertainty following fresh US military strikes on Iran and tighter sanctions on Iranian crude exports, prompting investors to shift toward safer assets and pushing the market sharply lower.
The benchmark index opened on a weak note, with broad-based selling across major sectors dragging it to an intraday low of 183,758.85 points, a decline of 2,496.70 points, or 1.34%, within minutes of the opening bell.
Although bargain hunting helped the market recover part of the decline, the benchmark Index remained firmly in negative territory. By 1:04pm, the KSE-100 Index stood at 184,421.56, down 1,833.99 points or 0.98%, after earlier trading at 184,459.47, reflecting a loss of 1,796.08 points (0.96%) at 12:34pm.
During the session, the market touched an intraday high of 185,215.56 points and a low of 183,528.93 points. Trading activity remained healthy, with 175.31 million shares changing hands, while the total traded value reached approximately Rs15.50 billion.
The latest downturn came as investors reacted to a sudden geopolitical shock that prompted investors to reduce exposure to equities, leading to broad-based selling across major sectors, including oil and gas exploration, commercial banks, fertiliser, cement and power stocks.
Market participants said investors were closely monitoring developments in the Middle East, as any further escalation could increase volatility in global oil prices, inflation expectations and regional financial markets, keeping sentiment cautious for the remainder of the trading session.
Source: Express Tribune
