The Pakistan Stock Exchange (PSX) turned sharply bearish on Thursday as rising tensions in the Middle East affected investor sentiment. The KSE-100 index fell by 2,500 points, closing at 155,792.53 points by mid-morning.
The decline of 2,500 points marks a 1.59 percent drop from the previous close of 158,313 points. Analysts attributed the fall to escalating conflict in the region and Iran’s rejection of US ceasefire proposals.
Heavy selling was observed across major sectors including automobile manufacturing, cement, commercial banking, oil and gas exploration, OMCs, and power generation. Large-cap stocks such as MCB, MEBL, NBP, MARI, OGDC, PPL, POL, PSO, and HUBCO led the losses.
Iran’s officials described the US ceasefire proposal as “unbalanced” and “unacceptable in its current form.” A senior Iranian official stated that any agreement would only proceed on Iran’s terms. He emphasized that no negotiations would occur until these conditions are met.
The official added that Iran would continue defensive military operations unless its demands are fully addressed. This stance has raised global concern and triggered a wave of uncertainty in financial markets.
Market analysts warned that the PSX could face further volatility if the Middle East conflict escalates. Investor sentiment is expected to remain cautious, particularly in large-cap sectors sensitive to global energy and trade developments.
The fall of 2,500 points also reflects broader regional instability impacting investor confidence. Many traders reportedly opted to reduce exposure to high-risk stocks, prompting widespread selling.
Experts suggested that market recovery will depend on de-escalation in the region and clearer diplomatic developments. They emphasized monitoring international news and geopolitical signals closely in the coming days.
With heightened global risks, the PSX is likely to see continued volatility. Investors are advised to approach trading carefully and consider defensive strategies to protect portfolios amid uncertain conditions.
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