PSX loses 903 points as Middle East tensions weigh on market

Pakistan's stock market came under significant pressure on Wednesday as escalating geopolitical tensions in the Middle East dampened investor confidence, leading to a broad-based sell-off across key sectors.

Pakistan’s stock market came under significant pressure on Wednesday as escalating geopolitical tensions in the Middle East dampened investor confidence, leading to a broad-based sell-off across key sectors. The benchmark KSE-100 Index surrendered the gains recorded in the previous session and closed sharply lower, reflecting cautious sentiment among market participants.

At the close of trading, the KSE-100 Index settled at 169,427.44 points, registering a decline of 903.12 points, or 0.53 percent. The market experienced heightened volatility throughout the day, with the benchmark touching an intraday high of 170,729.57 points before falling to a low of 169,346.38 points. The index moved within a wide range of more than 1,380 points as investors reacted to global developments and engaged in profit-taking.

Trading activity remained healthy, with more than 163 million shares exchanged among KSE-100 constituents. However, market breadth remained largely negative. Of the 100 companies included in the benchmark index, 66 closed in the red, 32 posted gains, while two stocks ended the session unchanged.

The banking sector emerged as the primary drag on the market, contributing significantly to the overall decline. Major banking stocks witnessed selling pressure, with Bank Al-Habib Limited (BAHL), United Bank Limited (UBL), and MCB Bank among the largest contributors to the index’s losses. Energy-related shares also faced headwinds, as investors reassessed risks amid uncertainty surrounding regional stability and the potential impact on global energy markets.

Among individual stocks, Pakistan Stock Exchange (PSX), Bank Al-Habib Limited (BAHL), Askari Bank Limited (AKBL), Pakistan Telecommunication Company Limited (PTC), and Nishat Power Limited (NPL) recorded some of the steepest declines during the session.

Despite the overall weakness, a handful of stocks managed to post notable gains. International Steels Limited (ISL) led the advancers with a strong rise of nearly 10 percent, followed by Indus Motor-related and industrial sector stocks, which attracted selective buying interest. Investors also showed interest in engineering, textile, and sugar-sector companies, helping cushion some of the market’s losses.

Sector-wise, commercial banks exerted the greatest negative impact on the benchmark index, followed by investment companies and securities firms, oil and gas exploration companies, technology and communication stocks, and cement manufacturers. In contrast, engineering companies provided the strongest support, while gains in paper and packaging, textile composites, sugar producers, and food-related stocks offered additional stability.

The broader market also ended the day in negative territory. The All-Share Index declined by 325.06 points, or 0.32 percent, to close at 102,450.93 points. Overall market turnover reached nearly 792 million shares, while the total value of traded securities stood at Rs25.48 billion.

A total of 488 companies participated in trading activity. Among them, 191 stocks closed higher, 258 declined, and 39 remained unchanged. More than 374,000 transactions were recorded during the session, highlighting active participation despite the bearish trend.

Market analysts attributed the decline primarily to growing concerns over the geopolitical situation in the Middle East. Investor sentiment weakened after reports of U.S. military action against Iran raised fears of a wider regional conflict. The developments pushed international oil prices higher and renewed concerns about possible disruptions to energy shipments through the Strait of Hormuz, one of the world’s most critical oil transit routes.

The uncertainty prompted investors to reduce exposure to riskier assets and lock in profits accumulated during the market’s recent rally. Banking, energy, and technology stocks bore the brunt of the selling pressure as traders adopted a defensive strategy amid heightened global uncertainty.

Despite Wednesday’s decline, the Pakistan Stock Exchange has delivered strong gains during the current fiscal year. The KSE-100 Index has advanced by approximately 43,800 points, representing a gain of nearly 35 percent. However, on a calendar-year basis, the benchmark remains down by around 4,627 points, reflecting the market’s fluctuating performance amid domestic and international challenges.

Among the most actively traded stocks of the day were TPL Properties (TPLP), TPL Corp (TPL), Telecard Limited (TELE), Loads Limited (LOADS), and OBOY, all of which attracted substantial investor interest and accounted for a significant portion of overall market volume.