Volatility at PSX, KSE-100 settles 1,100 points lower
- Benchmark index settles at 177,083.22
The Pakistan Stock Exchange's KSE-100 Index fell over 1,100 points amid continued uncertainty regarding a US-Iran diplomatic resolution, despite earlier gains and positive inflation news.
- KSE-100 Index's significant drop amid US-Iran diplomatic uncertainty.
- Pakistan's inflation rate returning to single digits in July 2026.
- Global market reactions to US-Iran tensions and oil price fluctuations.
Selling returned at the Pakistan Stock Exchange (PSX) as a diplomatic resolution to the US-Iran war that has disrupted shipments still seems unlikely, with the benchmark KSE-100 Index shedding over 1,100 points on Tuesday.
Trading opened on a highly positive note, with the index quickly surging to its intra-day high of 178,768.83 within the first few minutes of the session.
However, selling returned to the PSX, which intensified after midday, dragging the index steadily lower to an intra-day low of 177,043.10.
At close, the benchmark index settled at 177,083.22, down by 1,116.80 points or 0.63%.
In a key development, Pakistan’s inflation reading was back in single digits, with CPI clocking in at 9.2% on a year-on-year (YoY) basis in July 2026, Pakistan Bureau of Statistics (PBS) data showed on Monday.
On Monday, PSX staged a strong recovery as easing geopolitical tensions in the Middle East and a sharp decline in international crude oil prices reignited investor confidence and triggered broad-based buying across key sectors.
The benchmark KSE-100 Index gained 2,105.91 points, or 1.20%, to settle at 178,200.02 points.
Internationally, Asian markets made cautious gains at the start of trading as investors followed a global rally, with oil prices holding near the lowest levels in weeks as the US-Iran conflict remained at a stalemate.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%, led by South Korean shares rallying as much as 2.1%. Japan’s Nikkei 225 slid 0.3%, while S&P 500 e-mini futures nudged 0.1% higher.
Overnight, markets took confidence from data showing that US manufacturing activity increased to the highest level in more than four years in July, sending the Dow Jones Industrial Average to a record close.
Oil prices made limited gains as trading resumed in Asia, with Brent crude up 0.6% at $84.29 a barrel, after falling to a three-week low on Monday as US President Donald Trump said he had held off on a fresh attack on Iran as a gesture of goodwill in peace talks.
However, Tehran has denied that any negotiations are taking place.
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