PSX Falls Over 2% as Renewed Iran Tensions Trigger Broad Market Selloff

The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Tuesday morning as escalating tensions between the United States and Iran dampened investor sentiment. The benchmark KSE-100 Index fell more than 3,600 points during early trading, slipping below 177,000 points.

 

By 9:43am, the KSE-100 Index was trading at 176,309.50, down 3,617.54 points, or 2.01%, from the previous close.

 

Selling was witnessed across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies (OMCs), and power generation. Heavyweight stocks such as MARI, OGDC, PPL, HUBCO, MCB, MEBL, and UBL were among the biggest contributors to the decline.

 

The selloff followed Monday's weak session, when the benchmark index lost 2,314.73 points (1.27%) to close at 179,927.05, reflecting growing concerns over geopolitical risks in the Middle East.

 

Global financial markets also remained volatile after reports that the United States had reinstated a naval blockade on Iranian shipping and imposed a 20% fee on cargo passing through the Strait of Hormuz. The developments pushed Brent crude prices up 2.6% to around $85.50 per barrel, their highest level in about a month.

 

Investor sentiment was further affected by hawkish remarks from U.S. Federal Reserve Governor Christopher Waller, who indicated that interest rates could be raised if inflation remains above the central bank's target. Rising geopolitical tensions and expectations of tighter monetary policy weighed on global equities while increasing demand for safe haven assets.