The Pakistan Stock Exchange (PSX) remained under heavy selling pressure on Tuesday, with the benchmark KSE-100 Index falling by more than 3,000 points in early trading as escalating tensions in the Middle East and rising global oil prices dampened investor confidence.
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During the opening session, the KSE-100 Index dropped 3,464.89 points to 176,462.15, compared with the previous close of 179,927.04. The decline marked the second consecutive day of significant losses, extending Monday’s market downturn.
Market sentiment weakened after global oil prices climbed to their highest level in four weeks following renewed hostilities between the United States and Iran. Investors reacted cautiously after the US reimposed a naval blockade on Iran while both countries intensified military activity around the Strait of Hormuz, raising concerns over global energy supplies and inflationary pressures.
Brent crude futures rose to $84.80 per barrel, while US West Texas Intermediate crude increased to $79.84 a barrel during Asian trading hours. The sharp rise in oil prices has renewed fears of higher import costs for energy-dependent economies, including Pakistan.
Awais Ashraf, Director of Research at AKD Securities, said the market’s decline was triggered by renewed geopolitical uncertainty following the US move against Iran. He noted that the selling was broad-based, with cyclical sectors experiencing the steepest declines as investors reassessed the medium-term economic outlook.
Monday’s trading session had already reflected growing investor caution. The KSE-100 Index closed at 179,927 after losing 2,314 points, slipping below the key 180,000-point level as geopolitical developments overshadowed Pakistan’s improving macroeconomic indicators.
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Analysts said profit-taking following the market’s recent rally also contributed to the decline, with investors choosing to secure gains amid increasing global uncertainty. Market participants are expected to remain focused on developments in the Middle East, oil price movements and any diplomatic efforts that could help stabilise regional tensions and restore investor confidence.