KARACHI: The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Tuesday, with the benchmark KSE-100 Index falling sharply as investor optimism over a possible US-Iran agreement weakened.
Market sentiment deteriorated after US President Donald Trump called for compensation from Iran, casting further doubt on prospects for an agreement that could help end the conflict and facilitate the reopening of the Strait of Hormuz.
According to PSX data, the KSE-100 Index opened on a negative note and dropped more than 1,100 points within the first few minutes of trading. Selling pressure persisted throughout the session.
By 3:23pm, the benchmark index was trading at 179,859.62 points, down 1,450.66 points, or 0.81%, from the previous close.
Broad-based selling was witnessed across several major sectors, including automobile assemblers, cement, cable and electrical goods, commercial banks, chemicals, fertiliser, oil and gas exploration companies, oil marketing companies and power generation and distribution firms.
The market had also ended slightly lower on Monday after profit-taking in heavyweight stocks erased the gains recorded earlier in the session. The KSE-100 fell 119.74 points, or 0.07%, to close at 181,310.28 points.
Global Markets
Asian equities traded mixed on Tuesday as uncertainty surrounding US-Iran negotiations and the potential reopening of the Strait of Hormuz kept investors cautious. Renewed concerns over inflation and interest rates also weighed on sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses before trading 0.36% higher. South Korea’s KOSPI gained 1.3%, while Hong Kong’s Hang Seng Index declined 0.6% and China’s CSI300 slipped 0.05%.
US equity futures pointed towards a modest recovery after Wall Street ended lower on Monday. Nasdaq futures rose 0.34%, while S&P 500 futures gained 0.13%.
European markets were comparatively subdued, with EUROSTOXX 50 futures remaining flat. FTSE futures slipped 0.05%, while DAX futures edged up 0.07%.
Oil Prices Rise
Oil prices also climbed as geopolitical uncertainty continued to affect energy markets.
By 0805 GMT, Brent crude futures had risen $1.92, or 2.19%, to $89.64 per barrel. US West Texas Intermediate futures gained $1.91, or 2.33%, to $84.04 per barrel.
Both benchmarks were trading at their highest levels since July 31, reflecting continued concerns over supply disruptions and developments surrounding the Strait of Hormuz.
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