Pakistan Stock Exchange (PSX) experienced heavy losses after US President Donald Trump announced increased attacks on Iran. The market decline matters as investor confidence fell sharply, affecting portfolios nationwide. Traders, investors, and companies listed on PSX were directly impacted by the sharp sell-off.
Trading began with strong downward momentum as the 100-index fell 3,763 points to 151,748. Analysts noted early panic selling as uncertainty over Iran escalations gripped the market. The news immediately overshadowed previous gains from bullish sentiment following Trump’s statement on exiting the Iran conflict.
Read more: PSX rebounds as index gains over 6,700 points
During the session, losses deepened and the 100-index declined by 4,088 points, closing at 151,423. Overall, PSX recorded a 2.63 percent decrease in the 100-index, reflecting high market volatility. Sectoral shares across banking, energy, and industrial sectors were broadly affected by the negative trend.
Market experts attributed the sharp fall to geopolitical risk and fear of escalating US-Iran conflict. Investors reacted to potential economic and trade disruptions caused by heightened military tensions. The sudden shift highlights the sensitivity of Pakistan’s markets to global political developments.
Read more: PSX nosedives amid rising ME tensions
Yesterday, markets had surged after Trump indicated plans to reduce US involvement in Iran, generating optimism. Today’s reversal underscores the fragility of investor sentiment amid geopolitical uncertainty. Analysts urge cautious trading until regional tensions stabilize and clarity emerges on international policy moves.