PSX falls 2,500 points on geopolitical fears

KSE-100 Index plunged nearly 2,500 points, falling to an intraday low of 183,758.85 points, a decline of 2,496.70 points

Investor sentiment turned sharply negative at the Pakistan Stock Exchange (PSX) on Wednesday, with the benchmark KSE-100 Index suffering a steep decline during early trading as rising geopolitical tensions rattled global financial markets.

The market came under intense selling pressure immediately after trading began, following renewed concerns over developments in the Middle East. The uncertainty, fueled by fresh US military action involving Iran and stricter sanctions targeting Iranian crude oil exports, prompted investors to adopt a cautious approach and reduce exposure to equities.

Within minutes of the opening bell, the KSE-100 Index plunged nearly 2,500 points, falling to an intraday low of 183,758.85 points, a decline of 2,496.70 points, or 1.34 percent, compared to the previous close.

Despite the sharp fall, selective buying at lower levels helped the market recover part of its losses later in the session. However, the benchmark index remained firmly in negative territory throughout the day, reflecting continued investor caution.

By 1:04pm, the KSE-100 Index had recovered slightly to 184,421.56 points, though it was still down 1,833.99 points, or 0.98 percent. Earlier, at 12:34pm, the index was recorded at 184,459.47 points, showing a loss of 1,796.08 points, or 0.96 percent.

During intraday trading, the benchmark index moved between a high of 185,215.56 points and a low of 183,528.93 points, highlighting the heightened volatility that dominated the session.

Trading activity remained robust despite the bearish sentiment. More than 175.31 million shares were traded, with the total value of transactions reaching approximately Rs15.50 billion, indicating active participation from investors amid fluctuating prices.

The decline was broad-based, with heavy selling witnessed across several major sectors, including oil and gas exploration, commercial banking, fertiliser, cement, and power generation companies. Market analysts said investors opted to lock in profits and shift toward safer assets as uncertainty surrounding regional developments intensified.

Financial experts noted that geopolitical risks often have a significant impact on investor confidence, particularly in emerging markets. They warned that any further escalation in the Middle East could lead to increased volatility in global crude oil prices, renewed inflationary pressures, and greater uncertainty across regional financial markets.