PSX Slides Nearly 4,800 Points as Escalating US-Iran Tensions Weigh on Markets

The Pakistan Stock Exchange (PSX) witnessed heavy selling on Tuesday as escalating tensions between the United States and Iran triggered a broad market selloff. The benchmark KSE-100 Index fell nearly 4,800 points during intraday trading, extending losses from the previous session.

 

By 12:00pm, the KSE-100 Index was trading at 175,137.34, down 4,789.70 points, or 2.66%, from the previous close.

 

Selling pressure was seen across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies (OMCs), and power generation. Index-heavy stocks such as MARI, OGDC, PPL, HUBCO, MCB, MEBL, and UBL were among the major laggards.

 

The decline follows Monday's bearish session, when the benchmark index dropped 2,314.73 points (1.27%) to close at 179,927.05, as investors reacted to rising geopolitical uncertainty in the Middle East.

 

Global markets also remained volatile after US President Donald Trump announced the reinstatement of a naval blockade on Iranian shipping and a 20% fee on cargo passing through the Strait of Hormuz. The development fuelled concerns over global trade and energy supplies, pushing Brent crude prices up 2.6% to around $85.50 per barrel, the highest level in about a month.

 

Investor sentiment was further dampened by hawkish comments from US Federal Reserve Governor Christopher Waller, who indicated that additional interest rate hikes could be considered if inflation remains above target. Markets have since increased expectations of a rate hike at the Fed's upcoming policy meeting later this month, adding to uncertainty across global financial markets.