The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Tuesday as growing fears of a prolonged Middle East conflict pushed investors towards caution.
The benchmark KSE-100 Index fell more than 2,100 points during the session, extending the market’s decline for a second straight day. At around 1:30pm, the index was down 2,139.58 points, or 1.23 percent, at 171,496.49.
The market later recovered some ground but remained firmly in negative territory. By 2:04pm, the KSE-100 stood at 171,970.90, down 1,665.17 points, or 0.96 percent, from the previous close of 173,636.07.
The index moved between an intraday high of 173,736.19 and a low of 171,490.63. Trading activity remained strong, with more than 154.1 million shares changing hands.
The latest decline followed a 1,692.74-point, or 0.97 percent, drop on Monday, when broad-based selling hit major sectors including banks, oil and gas and cement.
On Tuesday, selling again spread across key areas of the market. Automobile assemblers, cement companies, commercial banks and oil marketing companies came under pressure. Heavyweight stocks such as Pakistan State Oil, Mari Petroleum, Pakistan Oilfields, Meezan Bank, National Bank of Pakistan and United Bank were among those trading in the red.
However, some stocks moved against the wider market trend. Pakistan International Maritime, PSEL and FIL were among the strongest performers, each gaining around 10 percent. ASLPS rose 8.47 percent, while CFL, SANSM, PKGI, ARMG, NAGC and SHEZ also posted notable gains.
At the other end, several stocks fell by about 10 percent, including SLYT, IML, HAFL, LEUL and ASTM. CLVL, FPJM and PPVC also suffered sharp losses.
The selling pressure came as tensions in the Middle East intensified. Iran has warned that it could retaliate against any fresh US attacks by targeting energy infrastructure and US oil and gas interests in the Gulf.
The threat has also pushed global oil prices higher. Brent crude rose for a third consecutive session, edging up 0.04 percent to $97.04 a barrel after reaching a six-week high on Monday.
Higher oil prices and rising geopolitical risks are a concern for markets such as Pakistan, where investors remain sensitive to the impact of energy costs on inflation, the external account and corporate earnings.
The KSE-100 is now down 1.20 percent since the start of the year, although it remains 10.18 percent higher than a year ago. The index’s 52-week range stands between 144,119.44 and 191,032.73 points.
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