Pakistan’s stock market came under intense pressure on Wednesday as investors reacted to renewed geopolitical tensions following US military strikes on Iran and fresh sanctions targeting Iranian crude exports.
The benchmark KSE-100 Index plunged by more than 6,400 points during intraday trading.
Market sentiment deteriorated further after US President Donald Trump declared that the MoU aimed at ending the conflict with Iran was “over” and said he had no intention of engaging with Tehran.
By 2:00 pm, the KSE-100 Index had fallen to 179,792.17 points, down 6,463.38 points, or 3.47%, from the previous close.
Heavy selling was recorded across major sectors, including automobile assemblers, cement manufacturers, commercial banks, fertiliser companies, oil marketing firms, and power producers. Among the major index-weighted stocks trading lower were HUBCO, Mari Energies, OGDC, Pakistan State Oil (PSO), SSGC, SNGPL and Wafi Energy.
Global markets were also rattled after the US launched another round of airstrikes on Iran on Tuesday and withdrew a license that had allowed Tehran to sell oil. The move came after three oil tankers were reportedly struck by projectiles in the Strait of Hormuz, increasing concerns over the stability of the already fragile ceasefire.
The developments pushed US crude oil prices nearly 3% higher in early trading, building on gains from the previous session. Meanwhile, the US dollar remained near its strongest level of the week against a basket of major currencies.
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