The Pakistan Stock Exchange (PSX) suffered a severe downturn on Wednesday as geopolitical turmoil in the Middle East sparked a massive sell-off. The benchmark KSE-100 Index plummeted by over 6,400 points, closing at 179,806.21, at a sharp 3.46 percent decline from the previous session’s finish of 186,255.55.
Investor sentiment was severely rattled following US President Donald Trump’s declaration that the Islamabad Memorandum of Understanding (MoU) with Iran was “over.”
This diplomatic collapse, coupled with the resumption of US military strikes on Iranian infrastructure and the revocation of oil sales licences, sent shockwaves through global markets.
Oil markets experienced a significant six percent surge, with Brent crude climbing to $78.82 per barrel and WTI settling at $74.96. The abrupt escalation in the Strait of Hormuz has effectively dismantled the ceasefire, forcing investors to retreat from risk-heavy assets.
Selling pressure was broad-based, hitting major index-heavy sectors including automobile assemblers, commercial banks, fertiliser, and power generation.
Significant losses were recorded in blue-chip stocks such as HUBCO (Hub Power Company), MARI, OGDC (Oil and Das Development Limited), and PSO (Pakistan State Oil), as market participants reacted to the sudden instability.
