KARACHI:
Intense selling overwhelmed activity at the Pakistan Stock Exchange on Tuesday, as mounting US‑Iran tensions and a spike in oil prices triggered panic, pushing the KSE‑100 index down by over 6,400 points.
Pressure persisted from the opening bell, as investors dumped shares broadly, worried that the geopolitical flare‑up could interrupt global energy supplies and further strain Pakistan’s fragile economy. After briefly touching an intraday high of 178,112.05, the KSE‑100 slid lower, with heavy liquidation driving it to an intraday low of 173,349.42 shortly before the close.
The sell‑off echoed weakness seen across Asian markets after President Trump announced the reinstatement of a naval blockade and a 20 % levy on cargo moving through the Strait of Hormuz, stoking fears of energy‑supply disruptions and lifting crude oil to a one‑month high.
The benchmark KSE‑100 index closed at 173,518.82, down 6,408.23 points, or 3.56 %. KTrade Securities’ equity trader Ahmed Sheraz observed that the KSE‑100 faced a sharp sell‑off as investor sentiment deteriorated amid fears of a prolonged regional conflict. Concerns over the violation of the US‑Iran ceasefire, coupled with escalating tensions between Saudi Arabia and the Houthis, triggered broad‑based risk aversion, resulting in one of the steepest declines in recent sessions. Despite the sharp correction, trading activity remained robust, with 409 million shares traded on the KSE‑100 index.
Selling pressure was broad‑based, with every major sector closing lower. Commercial banks, cement, oil & gas, fertilizers, investment banks and power stocks felt the brunt, as heavyweights including UBL, Engro Holdings, Fauji Fertiliser, Lucky Cement, Meezan Bank, Oil & Gas Development Company, HBL, Pakistan Petroleum and MCB Bank led the index’s decline. Sheraz noted that the short‑term trajectory will largely hinge on how events in the Middle East unfold.
Arif Habib Limited’s Deputy Head of Trading, Ali Najib, said the PSX saw broad‑based selling, with the KSE‑100 dropping 6,408 points (‑3.56 %) to close at 173,519. Building on the prior day’s slide, the index faced intense selling as mounting geopolitical anxieties sparked investor panic.
The market opened sharply lower and stayed under pressure all day, as investors shed equities amid geopolitical uncertainty and a spike in international oil prices. UBL, Engro Holdings, Fauji Fertiliser, Lucky Cement, Meezan Bank, OGDC, HBL, MCB, PPL and Hub Power led the laggards, together shaving roughly 3,264 points off the index.
“Looking ahead, market direction will continue to hinge largely on geopolitical developments,” Najib wrote.
Topline Securities described the session as a “bloodbath,” saying heightened geopolitical tensions followed the reported breakdown of an interim US‑Iran peace deal. Sentiment soured after news of a US naval blockade and airstrikes, while Iran retaliated by targeting more oil tankers in the Strait of Hormuz. The flare‑up raised worries about regional stability, possible disruptions to global oil supplies and heightened risk aversion, sparking widespread selling at the PSX.
Total trading volume rose to 912.6 million shares, up from Monday’s 845.3 million, with the traded share value reaching Rs 45.6 billion.
In the ready market, 498 companies saw their shares change hands, with only 40 advancing, 439 declining and 19 finishing flat.
Cnergyico Pk topped the volume chart with 84.5 million shares traded, slipping Rs 0.37 to close at Rs 9.68. Foreign investors purchased shares valued at Rs 556.8 million, according to the National Clearing Company.