KARACHI: The Pakistan Stock Exchange (PSX) suffered one of its steepest single-day declines on Wednesday, as renewed geopolitical tensions in the Middle East sparked widespread panic selling, with investors rushing to reduce exposure after fresh US strikes on Iran and escalating concerns over a broader regional conflict pushed international oil prices sharply higher.
The benchmark KSE-100 Index plunged 4,626.18 points, or 2.48 percent, to close at 181,629.37 points against the previous close of 186,255.55 points. After opening on a weak note, the benchmark briefly touched an intraday high of 185,215.56 points before selling pressure intensified, dragging it to an intraday low of 179,504.35 points.
The BRIndex100 closed at 19,976.79 points, down 580.98 points or 2.83 percent, with a total turnover of 1.198 billion shares. Similarly, the BRIndex30 settled at 73,546.05 points, losing 2,268.50 points or 2.99 percent, on a trading volume of 884.16 million shares.
According to Topline Securities, the local bourse witnessed a bloodbath as investor sentiment deteriorated following US President Donald Trump’s statement that the ceasefire with Iran was effectively over, while renewed US military strikes reignited fears of further escalation in the region.
The brokerage house said the surge in international crude oil prices further dampened investor confidence and triggered a broad-based risk-off move across the market. It added that the decline was also amplified by profit-taking after the market’s recent record-setting rally despite an otherwise supportive domestic macroeconomic backdrop.
On the index contribution front, Topline Securities noted that heavyweight stocks United Bank Limited, Fauji Fertilizer Company, Engro Holdings, Lucky Cement and Hub Power Company collectively erased around 1,528 points from the benchmark index.
Despite the steep decline in share prices, trading activity surged as investors rushed to exit positions. Ready market volume jumped to 1.551 billion shares from 984.85 million shares in the previous session, while the value of traded shares rose sharply to Rs62.44 billion compared to Rs45.70 billion a day earlier.
The broad-based sell-off wiped out more than Rs474 billion from investors’ wealth, with total ready market capitalization declining to Rs20.383 trillion from Rs20.857 trillion in the previous session.
Market breadth remained overwhelmingly negative. Out of 496 companies traded in the ready market, only 87 stocks advanced, 396 declined, while 13 remained unchanged.
Among the most actively traded stocks, WorldCall Telecom topped the volume chart with 220.44 million shares, closing at Rs1.33. Cnergyico PK followed with a turnover of 111.67 million shares to settle at Rs8.72, while K-Electric Limited ranked third with 90.58 million shares, closing at Rs7.86.
On the winners’ table, Baba Farid Sugar Mills Limited gained Rs35.65 to close at Rs392.15, while Fateh Industries Limited added Rs35.47 to settle at Rs390.13. Among the major losers, PIA Holding Company Limited (B) declined Rs460.36 to Rs17,900.00, while Khairpur Sugar Mills Limited shed Rs191.14 to close at Rs1,720.29.
Sector-wise, all Business Recorder indices finished in the red. The BR Cement Index recorded the steepest decline, falling 464.88 points or 3.47 percent to 12,944.72 points on turnover of 93.82 million shares.
The BR Tech & Communication Index lost 103.29 points or 2.61 percent to 3,847.28 points, recording the highest sectoral turnover of 287.75 million shares. The BR Power Generation and Distribution Index declined 767.54 points or 2.58 percent to 28,931.25 points on volume of 109.14 million shares, while the BR Commercial Banks Index shed 1,513.86 points or 2.33 percent to 63,329.90 points, with 117.95 million shares traded.
The BR Oil and Gas Index slipped 339.11 points or 2.15 percent to 15,466.07 points on turnover of 74.50 million shares, whereas the BR Automobile Assembler Index eased 460.60 points or 1.89 percent to 23,920.03 points, with 5.03 million shares changing hands.
Market participants said Wednesday’s sharp correction reflected heightened geopolitical uncertainty rather than deterioration in domestic economic fundamentals. They noted that developments in the Middle East, movements in international oil prices and the evolving global risk environment will remain the key drivers of investor sentiment in the near term, while attention will also stay focused on upcoming corporate earnings and macroeconomic indicators.
Copyright Business Recorder, 2026