PSX falls over 1,300 points amid geopolitical jitters

The Pakistan Stock Exchange (PSX) witnessed a volatile trend on Wednesday as geopolitical jitters from escalating tensions in the Middle East triggered a sell-off, with the benchmark KSE-100 Index dropping over 1,300 points at close.

According to the PSX website, the market opened on a bearish note, and the KSE-100 Index fell by 2,341.36 points to 154,790.73 around 9:20 am. The benchmark later recovered part of the losses, gaining at least 800 points to reach 157,962.47 by 10:00 am.

Market sentiment remained subdued as uncertainty surrounding developments in the Middle East continued to weigh on investor confidence.

Selling pressure was visible across major sectors, including automobile assemblers, cement, commercial banks, exploration and production companies, oil marketing firms and power generation. 

Index-heavy stocks such as Oil and Gas Development Company Limited, Mari Energies Limited, Pakistan Oilfields Limited, Pakistan Petroleum Limited, Hub Power Company, Habib Bank Limited, Meezan Bank Limited and National Bank of Pakistan traded in negative territory.

At close, the market settled at 155,777.21, down by 1354.88 points or 0.86% from the previous close. 

This volatility follows a sharp recovery in the previous session. On Tuesday, the KSE-100 Index gained 5,159.10 points, or 3.39%, to close at 157,132.10 points, as buying activity returned after the previous day’s steep sell-off.

Earlier on Monday, trading at the PSX was halted under market regulations after the benchmark index dropped more than 9% during the session. The KSE-100 Index ended the day at 151,972.99, down 16,089.17 points, or 9.57%.

On the global front, Asian markets skidded on Wednesday, with investors cutting crowded positions in gold and chipmakers on worries a wider Mideast war could deliver an energy shock that raises inflation and delays ​rate cuts.

Shares in Seoul dived 4% to take two-day losses beyond 11% as ‌fast-money and foreigners bailed out of a market that had soared on memory chipmakers' vast AI-driven profits.

The selloff dragged the won to a 17-year low.

Japan's Nikkei slid 2.5% in a third straight session of losses. Japan and ​South Korea are major energy importers.

Benchmark Brent crude oil futures are up more than ​12% for the week at $81.40 a barrel, though they came off highs after ⁠U.S. President Donald Trump ordered an insurance guarantee on Gulf shipping and said the navy ​may escort oil tankers through the Strait of Hormuz if necessary.

U.S. and Israeli forces have pounded Iran ​for four days and Iranian drones and missiles have struck Gulf oil refineries and also U.S. embassies in Saudi Arabia and Kuwait.