Selling pressure returned to the Pakistan Stock Exchange (PSX) on Tuesday as escalating tensions in the Middle East heightened investor concerns over a potentially prolonged conflict.
The benchmark KSE-100 Index fell nearly 1,000 points after Iran warned of retaliation against any fresh US strikes on its assets.
The index opened around the 173,500-point mark and climbed to an intraday peak of 173,736.19. However, the market came under renewed pressure around midday, with losses deepening during afternoon trading and the KSE-100 touching a low of 171,490.
A late-session recovery helped the index regain some ground, taking it back towards 173,000 points, but the rebound was insufficient to erase most of the day’s losses. The KSE-100 Index ultimately closed at 172,642.16, down 993.91 points, or 0.57%.
The decline followed another weak session on Monday, when the index dropped 1,692.74 points, or 0.97%, to finish at 173,636.08. Selling was witnessed across major sectors, particularly commercial banks, oil and gas companies and cement stocks, as investors remained cautious.
Meanwhile, global markets were also affected by heightened geopolitical uncertainty. The Japanese yen strengthened sharply on Tuesday, while Asian equities traded mixed amid regional economic data and renewed Iranian threats in the Persian Gulf. Rising concerns over energy supplies also pushed oil prices and bond yields higher.
Oil prices extended their gains for a third consecutive session as Asian trading resumed. Brent crude futures rose 0.04% to $97.04 a barrel after reaching a six-week high on Monday.
The rise in oil prices came after Iran warned that any new attacks could trigger retaliation against energy infrastructure in the Gulf, including US oil and gas interests, raising concerns about possible disruptions to regional energy supplies.
