PSX Closes Lower Amid Geopolitical Jitters; KSE-100 Sheds 903 Points on Middle East Escalation

Trading at the Pakistan Stock Exchange (PSX) remained highly volatile on Wednesday as investors reacted cautiously to escalating geopolitical tensions, triggering sharp intra-day swings in the benchmark KSE-100 index.

The market opened positively, with the index gaining 25.95 points (0.02%) to reach 170,356.51 by 9:44 a.m. However, sentiment quickly soured amid concerns over the Middle East following reports that a U.S. Army Apache helicopter was downed near the Strait of Hormuz. The incident prompted retaliatory U.S. strikes on Iranian targets, raising fears of a broader regional conflict.

These developments fuelled uncertainty across global financial markets and sparked a risk-off trading mood. The KSE-100 touched an intra-day high of 170,729.57 and a low of 169,346.38 before coming under sustained selling pressure in the latter half of the session. At close, the index shed 903.12 points, or 0.53%, to settle at 169,427.44.

According to Topline Securities, the local bourse witnessed a turbulent session as investors navigated sharp swings in sentiment. The benchmark recorded an intra-day high of 399 points and a low of 984 points, reflecting heightened uncertainty and cautious behaviour.

Despite intermittent recovery attempts, sustained selling across key sectors kept the market under strain. Heavyweight stocks, including Meezan Bank, International Steels, Pakistan Oilfields, International Industries, and Interloop, collectively contributed 183 points to the index. Conversely, Bank AL Habib, United Bank, MCB Bank, Engro Holdings, and Oil & Gas Development Company dragged performance down by 464 points, Topline added.

KTrade Securities equity trader Ahmed Sheraz noted that cautious sentiment prevailed throughout the session amid weak global cues. Overnight losses in U.S. equities and negative trends across major Asian markets weighed on risk appetite, keeping PSX investors on the sidelines.

Trading activity remained moderate. The most actively traded index stocks were TPL REIT Fund I, The Bank of Punjab, and Maple Leaf Cement. Sectorally, the decline was led by commercial banks, investment banks, and oil & gas exploration companies.

International oil prices were broadly stable. Although crude briefly eased after signals from the U.S. administration suggested negotiations regarding Middle East tensions were underway, the overall geopolitical situation remained fluid. Going forward, market sentiment is likely to stay sensitive to regional developments, global equity trends, the upcoming FY27 budget, and oil price movements, Sheraz predicted.

Arif Habib Limited (AHL) reported that buying interest emerged below the 170,000 level, though the KSE-100 closed down 0.53%. On the index, 32 shares advanced while 67 declined. Meezan Bank (+1.2%), International Steels (+1%), and Pakistan Oilfields (+0.81%) were the top contributors. Bank AL Habib (-2.08%), UBL (-0.79%), and MCB (-1.66%) were the largest drags.

Meanwhile, remittances for May 2026 rose 15% year-on-year to an all-time high of $4.3 billion. In a sign of tense neighbourly relations, Afghanistan said Pakistani strikes in its eastern provinces caused casualties. “The KSE-100 is expected to find buyers below the 170k level,” AHL wrote.

Cumulatively, trading volumes jumped to 791.6 million shares from Tuesday’s 767.5 million. The value of traded shares stood at Rs25.5 billion.

Shares of 488 companies changed hands. Of these, 191 closed higher, 258 fell, and 39 remained unchanged.

TPL Properties led the volume chart with 64 million shares traded, rising Rs0.11 to close at Rs11.42. Foreign investors sold shares worth Rs1.1 billion, the National Clearing Company reported.

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