On Wednesday, the Pakistan Stock Exchange (PSX) continued its decline, with the benchmark KSE‑100 index dropping more than 6,700 points after the United States carried out airstrikes on Iran and reinstated sanctions on crude oil sales.
The PSX reported that trading opened bearishly, with the KSE‑100 shedding over 2,000 points in the first minutes. The index stayed lower throughout the day, facing fresh selling pressure after 1:30 p.m.
By 2:15 p.m., the index was trading around 179,542.10, down 6,713.45 points—or 3.6 %—from the previous close.
The sell‑off was widespread, dragging down shares in apparel, automobile assemblers and parts, cables and electrical equipment, chemicals, cement, commercial banks, fertilizers, oil marketing firms, power generators and refiners.
The drop came after the U.S. airstrikes on Iran and the re‑imposition of crude‑sales sanctions, which heightened worries about oil supplies and inflation. Iran’s Revolutionary Guard claimed it had struck U.S. military installations in Bahrain and Kuwait in response.
The decline built on Tuesday’s softer close, when traders took profits after the benchmark flirted with an intraday record. The KSE‑100 finished Tuesday at 186,255.55 points, down 1,199.14 points—or 0.64 %.
Global markets mirrored the risk‑off sentiment: oil jumped more than 3 %, U.S. Treasury yields rose, and the dollar climbed to its strongest level in a week. Traders also raised the odds of a September Federal Reserve rate increase, putting extra pressure on emerging‑market assets.
Asian markets swung between gains and losses as investors reacted to Samsung Electronics’ shares falling for a second consecutive day, even though the company announced a staggering 19‑fold profit increase. Analysts warn that memory‑chip demand could weaken in the second half of the year.
Brent crude futures gained 3.3 %, the largest single‑day rise since late May, reaching $76.54 per barrel. Although still far below the $120 peaks seen during the height of the conflict, the increase added fresh inflation concerns to bond markets, especially as prolonged fighting has depleted global oil inventories.
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