Selling pressure intensified at the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark KSE 100 Index declined 993.91 points, with escalating tensions in the Middle East increasing investor concerns about a prolonged and wider regional conflict. The market remained under pressure throughout the session as investors reacted to developments involving energy facilities in Saudi Arabia and rising geopolitical uncertainty across the region.
Market sentiment weakened further after Iran threatened retaliation against any new United States attacks on its assets. At the same time, attacks on several energy facilities in Saudi Arabia raised concerns that the conflict could expand further, increasing uncertainty for global energy markets and financial markets. The developments contributed to broad selling pressure across major sectors at the Pakistan Stock Exchange.
According to PSX data, the KSE 100 Index opened in negative territory but initially avoided a sharp decline during the early part of the session. Selling pressure increased significantly after noon, pushing the benchmark to an intraday low of 171,490.63 points. By around 1:30 pm, the index had fallen by approximately 2,145 points from the previous close, reflecting the intensity of selling during the session.
The selling was widespread and affected several major sectors of the market. Apparel, automobile assemblers, automobile parts and accessories, cement, chemicals, exchange-traded funds, fertiliser, commercial banks, oil and gas exploration companies and oil marketing companies all came under pressure. The broad-based decline reflected the cautious approach adopted by investors amid growing geopolitical risks and concerns over their potential impact on global commodity prices and economic conditions.
By the end of trading, the KSE 100 Index recovered part of its intraday losses but still closed at 172,642.16 points. The benchmark declined by 993.91 points, representing a decrease of 0.57% from the previous session. Tuesday’s decline extended the weakness seen during the previous trading session, when broad-based selling had already affected major sectors of the market.
On Monday, the KSE 100 Index had fallen by 1,692.74 points, or 0.97%, to close at 173,636.08 points. Commercial banks, oil and gas companies and cement stocks were among the sectors that experienced notable selling pressure during that session. The consecutive declines highlight the increased caution among investors as geopolitical developments continue to influence market expectations.
Global financial markets also faced pressure on Tuesday as attacks on energy facilities around the Gulf pushed crude oil prices higher. Brent crude moved toward the $100 per barrel level, while the Japanese yen strengthened as investors assessed the potential economic impact of escalating tensions. Copper prices also climbed to record levels, adding to the broader movement in international commodity markets.
European equities declined during the session, with the STOXX 600 falling 0.4%. S&P 500 futures were down 0.3%, while Nasdaq futures gained 0.1% ahead of the reopening of Wall Street following a long weekend. The mixed global market performance reflected continuing uncertainty over the economic and financial implications of the latest developments in the Middle East.
Oil prices recorded multi-week highs after Iran-backed Houthis attacked Saudi energy facilities and Tehran threatened the United States with what it described as “economic warfare”. By 0800 GMT, Brent crude futures had increased by $2.00, or 2.06%, to $99.00 per barrel. United States West Texas Intermediate crude stood at $94.41 per barrel, up $2.93, or 3.2%.
Brent crude had earlier reached as high as $99.22 per barrel, its highest level since July 24, while West Texas Intermediate reached $94.60, its highest level since June 8. The increase in oil prices and continued geopolitical uncertainty remain important factors for investors as markets assess the potential effects on energy costs, inflation and economic activity. For the Pakistan Stock Exchange, the developments have added to existing selling pressure and contributed to the continued weakness in the benchmark index.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.