ISLAMABAD: Pakistani stocks fell more than 4,500 points on Wednesday as investor fears surged over renewed tensions in the Middle East, financial analysts said as the US and Iran exchanged fresh attacks this week.
The KSE-100 benchmark index fell by 4,626.19 points or 2.48 percent by the close of trading on Wednesday, settling at 181,629.36 points compared with the previous close of 186,255.55.
The downturn was observed hours after US President Donald Trump said Washington’s peace memorandum of understanding with Iran was “over,” adding that he did not want to engage with Tehran. The Pakistan-mediated interim ceasefire, which opened a 60-day window for talks on a permanent deal, stalled after indirect negotiations in Qatar ended last week without progress.
The US military launched a fresh wave of strikes against Iran on Tuesday, following an attack by Tehran on three oil tankers in the Strait of Hormuz.
“Stocks fell across the board on investor fears over US peace deal over with Iran,” Arif Habib Commodities CEO Ahsan Mehanti told Arab News. “Investor concerns over inflation amid surge in global crude oil prices impacted the sentiments.”
He said the selloff in global equities also played a catalyst role in the bearish activity at the Pakistan Stock Exchange (PSX) on Wednesday.
Pakistani brokerage firm Topline Securities said the “bloodbath” at the PSX resulted in panic selling in the market over renewed geopolitical tensions in the Middle East.
“Investor sentiment turned sharply negative after US President Donald Trump declared the ceasefire with Iran effectively over, while fresh US strikes on Iran reignited fears of a broader regional conflict,” Topline said.
“The escalation also pushed international crude oil prices higher, further dampening investor sentiment and triggering a broad-based risk-off move across the market.”
Topline highlighted that United Bank Limited (UBL), Fauji Fertilizer Company Limited (FFC), Engro Holdings Limited (ENGROH), Lucky Cement Limited (LUCK), and Hub Power Company Limited (HUBC) collectively shaved approximately 1,528 points off the index.
World Call Telecom Limited (WTL) led the volumes chart, with 220 million shares changing hands, it said, adding that the total trading volume rose 1.551 billion shares, while traded value stood at Rs62.4 billion ($224.46 million).
