Selling pressure returned to the Pakistan Stock Exchange (PSX) as conflict in the region continued to escalate, pushing the benchmark KSE-100 Index down by over 2,000 points during the opening minutes of trading on Wednesday.
At 9:25am, the benchmark index was hovering at 155,131.90, a decrease of 2,000.19 points or 1.27%.
Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including OGDC, MARI, POL, PPL, HUBCO, HBL, MEBL and NBP, traded in the red.
On Tuesday, PSX staged a powerful and confidence-restoring rebound as aggressive value buying in heavyweight sectors helped the PSX recover sharply from the previous session’s historic rout, signalling a decisive shift in market sentiment from panic to opportunity.
The benchmark KSE-100 Index climbed 5,159.10 points or 3.39% to close at 157,132.10 points.
Internationally, Asian markets skidded on Wednesday, with investors cutting crowded positions in gold and chipmakers on worries a wider Mideast war could deliver an energy shock that raises inflation and delays rate cuts.
Shares in Seoul dived 4% to take two-day losses beyond 11% as fast-money and foreigners bailed out of a market that had soared on memory chipmakers’ vast AI-driven profits.
The selloff dragged the won to a 17-year low.
Japan’s Nikkei slid 2.5% in a third straight session of losses.
Japan and South Korea are major energy importers.
Benchmark Brent crude oil futures are up more than 12% for the week at $81.40 a barrel, though they came off highs after US President Donald Trump ordered an insurance guarantee on Gulf shipping and said the navy may escort oil tankers through the Strait of Hormuz if necessary.
US and Israeli forces have pounded Iran for four days, and Iranian drones and missiles have struck Gulf oil refineries and also US embassies in Saudi Arabia and Kuwait.
On Wall Street, indexes pared heavier losses, but the S&P 500 closed 0.8% lower on fear over potentially prolonged higher oil prices.
This is an intra-day update
American Dollar Exchange Rate