The Pakistan Stock Exchange (PSX) remained under pressure on Tuesday as escalating tensions between the United States and Iran continued to unsettle investors. Increased uncertainty sparked broad-based selling across the market, causing the benchmark index to lose more than 3,000 points during intraday trading.
The KSE-100 Index dropped by 3,383.75 points, or 1.88%, to reach 176,543.29 points. The benchmark had closed at 179,927.04 points in the previous session. The sharp fall of over 3,000 points reflected weak investor confidence amid growing geopolitical risks.
Selling pressure was visible across most major sectors of the market. Automobile manufacturers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies (OMCs), and power generation stocks all recorded losses during the trading session.
Several heavyweight stocks also ended the day in negative territory. These included MARI, OGDC, PPL, HUBCO, MCB, MEBL, and UBL. The decline in these major companies added further pressure to the benchmark index.
The latest fall followed another weak trading session on Monday. At the start of the week, the KSE-100 Index lost 2,314.73 points, or 1.27%, to settle at 179,927.05 points. The back-to-back losses have increased concerns among investors about continued market volatility.
Trading activity also slowed compared to the previous session. The ready market recorded a total volume of 845.279 million shares with a traded value of Rs35.551 billion. In comparison, the previous session saw 948.776 million shares traded with a total value of Rs38.413 billion.
The overall market capitalization also declined. It fell to Rs20.290 trillion from Rs20.503 trillion recorded a day earlier, reflecting the broad decline in share prices.
Out of 497 companies that traded during the session, only 128 posted gains. Meanwhile, 335 companies closed lower, while 34 remained unchanged. The figures highlighted widespread selling across the exchange.
Investor sentiment weakened further after US President Donald Trump announced that the United States would assume responsibility for securing the Strait of Hormuz. He said Washington would act as the “guardian” of the strategic waterway and keep it open for international shipping.
Trump also stated that the Strait of Hormuz would remain accessible with or without Iran. He announced plans for what he described as the reinstatement of an “Iranian blockade,” under which Iranian vessels and customers would be restricted from using the route, while ships from other countries would continue normal operations.
In addition, the US president proposed imposing a 20% charge on cargo passing through the Strait of Hormuz. He said the fee would help cover the costs of maintaining security in the region.
The Strait of Hormuz is one of the world’s most important energy corridors. Any disruption to shipping in the area can affect global oil supplies and financial markets.
The sharp decline of more than 3,000 points at the PSX reflects growing investor concerns over geopolitical tensions and their potential impact on the global economy. Analysts expect market sentiment to remain cautious until there is greater clarity on developments in the Middle East.
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