PSX sheds 1,382 points amid rising global tensions

Trading on the Pakistan Stock Exchange (PSX) fell sharply on Wednesday as investors caught attention amid escalating geopolitical tensions, particularly between the United States and Iran, and fears of a possible US strike on Tehran that have roiled markets and lifted oil prices.

The benchmark KSE-100 index fell 1,381.69 points, or 0.75% to close at 182,569.82, after swinging between an intraday high of 184,726.60 and a low of 182,369.87. Profit booking after recent gains, coupled with persistent selling, kept market sentiment subdued throughout the session.

Analysts believe the cautious mood reflected investors locking in profits and avoiding new exposure as regional uncertainty deepened, keeping the local stock market under pressure for most of the day.

KTrade equity trader Ahmed Sheraz noted that the PSX closed the session under pressure, with the benchmark KSE-100 at 182,569, down 1,381 points or 0.75% on a daily basis.

Market sentiment remained cautious throughout the session, mainly due to escalating geopolitical tensions between Iran and the US. Uncertainty surrounding a potential strike kept investors on edge, while regional Asian markets also remained under pressure, with the PSX following the broader trend.

Reading: Exports down 20% despite high inflows

Total volumes amounted to 444 million shares. Sector-wise, selling was broad-based in banks, cement, fertilizers, technology, power and pharma stocks. In general, noticeable pressure was seen in United Bank, MCB Bank, Fauji Fertiliser, Lucky Cement, Hub Power, Habib Bank, Pakistan Telecommunication, National Bank and Systems Limited, he added.

Oil and gas stocks were the only exception, supported by expectations of higher global oil prices, which helped Oil and Gas Development Company and Pakistan Petroleum close in positive territory.

Looking ahead, the market is expected to remain range-bound and volatile in the near term until greater clarity emerges on the geopolitical front. From a longer-term perspective, Sheraz expected the overall market outlook to remain intact and advised investors to remain cautious while gradually accumulating quality blue-chip stocks on dips.

Total trading volume was almost flat at 1.034 billion, compared with 1.037 billion on Tuesday. The value of traded shares stood at Rs 65.9 billion.

Shares of 483 companies were traded. Of these, 90 rose higher, 352 fell and 41 remained unchanged. K-Electric was the volume leader with 56.3 million shares traded, shedding Rs 0.02 to close at Rs 6.33.