PSX volatile as KSE-100 swings amid geopolitical tensions

The benchmark KSE-100 Index at the Pakistan Stock Exchange experienced sharp fluctuations on Tuesday as investors grappled with geopolitical uncertainty

The benchmark KSE-100 Index at the Pakistan Stock Exchange experienced sharp fluctuations on Tuesday as investors grappled with geopolitical uncertainty and ongoing profit-taking, resulting in a highly volatile trading session.

The market opened on a positive note, with renewed buying activity pushing the KSE-100 Index higher by more than 900 points during the early hours of trading. Investor sentiment initially improved on selective buying in key sectors, helping the benchmark recover some of the losses recorded in the previous session.

However, the rally proved short-lived as traders began booking profits later in the day, wiping out early gains and dragging the market back into negative territory. By 2:12pm, the benchmark index had fallen to 169,840.75 points, down 665.56 points from the previous close.

According to official PSX data, total trading volume during the session reached over 284 million shares, while the value of traded stocks stood at more than Rs12 billion, reflecting active participation despite market uncertainty.

Market analysts said investors remained cautious due to persistent geopolitical tensions in the Middle East and concerns over global economic stability. Uncertainty surrounding developments in US-Iran relations continued to influence trading behaviour, limiting investor confidence and encouraging short-term selling.

The latest session followed a weak close on Monday when the market shed more than 600 points amid concerns over the future of negotiations between the United States and Iran.

On Monday, the KSE-100 Index opened under heavy selling pressure and plunged by more than 1,400 points within minutes of trading. The benchmark briefly touched 169,682 points during intraday trade as investors reduced exposure in major sectors.

Selling pressure was particularly visible in cement, commercial banking, oil and gas exploration, oil marketing companies and power generation stocks, all of which contributed to the market’s decline.

Although the market staged a temporary recovery around midday on Monday through value hunting in select stocks, the rebound failed to sustain momentum. Fresh selling in heavyweight sectors pushed the index lower again by the close of trading.

The KSE-100 ultimately settled at 170,506.31 points on Monday, recording a decline of 609.51 points, or 0.36 percent.

Analysts at brokerage houses said the market is likely to remain sensitive to external developments, particularly geopolitical tensions and fluctuations in international oil prices, which continue to shape investor sentiment in Pakistan’s equity market.