KSE-100 sheds over 900 points amid Middle East tensions

The Pakistan Stock Exchange (PSX) observed a volatile trading session on Wednesday, with the benchmark KSE-100 Index shedding over 900 points amid escalating tensions in the Middle East.

The market opened on a positive note and quickly gained momentum, with the index climbing to an intraday high of 170,729.57 points during the first hour of trading.

However, the bullish sentiment proved short-lived as selling pressure emerged across the board, erasing early gains. The benchmark then entered a gradual downward trajectory, slipping below the 170,000-point level around midday and extending losses through the afternoon session.

At close, the benchmark index settled at 169,427.44, down by 903.12 points or 0.53%.

“The wide intraday range reflected a tug-of-war between cautious optimism and lingering concerns, with sentiment remaining fragile as participants assessed evolving macroeconomic cues while positioning ahead of key market triggers,” said Topline Securities.

“On the index contribution front, heavyweight stocks including MEBL, ISL, POL, INIL, and ILP collectively added 183 points to the benchmark index.

“On the other hand, BAHL, UBL, MCB, ENGROH, and OGDC weighed on performance, collectively eroding 464 points from the index,” it added.

On Tuesday, PSX staged a strong recovery as easing geopolitical tensions between Iran and Israel and a decline in international crude oil prices boosted investor confidence, triggering broad-based buying across key sectors. The benchmark KSE-100 Index gained 1,376.85 points, or 0.81%, to settle at 170,330.56 points.

Internationally, Asian stocks fell on Wednesday while oil prices surged as escalating tensions in the Middle East unsettled markets, dimming hopes for an end ​to the months-long war that has pushed commodities higher and stoked inflation worries.

The United States launched strikes against Iran after ‌President Donald Trump said Tehran had shot down a U.S. Apache helicopter in the Strait of Hormuz, leaving investors on edge over a fragile ceasefire between all sides.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6%. Japan’s Nikkei fell 0.9% while the tech-heavy South Korean KOSPI slumped 2% in a volatile week where AI stocks have ​come under pressure.

Oil prices climbed about 1% in early trade, moving away from a seven-week low touched in the previous session in ​the wake of the fresh U.S. attacks. Brent futures rose 0.9% to $92.29 a barrel, while U.S. West Texas Intermediate ⁠WTI crude climbed 0.8% to $88.97.

Meanwhile, the Pakistani rupee gained against the US dollar on Wednesday. At close, the local currency settled at 278.36, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 791.64 million from 767.45 million recorded in the previous close.

The value of shares declined to Rs25.48 billion from Rs27.18 billion in the previous session.

TPL Properties was the volume leader with 64.04 million shares, followed by TPL Corp Ltd with 40.65 million shares, and Telecard Limited with 40.41 million shares.

Shares of 488 companies were traded on Wednesday, of which 191 registered an increase, 258 recorded a fall, and 39 remained unchanged.