PSX falls amid uncertainty over US-Iran tensions

Pakistan Stock Exchange witnessed a volatile and largely negative trading session on Tuesday as investor sentiment weakened due to geopolitical uncertainty surrounding ongoing tensions and peace negotiations between the United States and Iran.

The benchmark KSE-100 Index started the day on a positive note and climbed to an intra-day high of 171,571.56 points amid early buying activity. However, the momentum failed to sustain as profit-taking emerged during the second half of trading, pushing the market sharply lower.

The index eventually dropped to an intra-day low of 168,823.32 points before settling at 168,916.22, recording a decline of 1,590.09 points or 0.93%.

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Market analysts said investors largely remained cautious due to uncertainty in global financial markets and rising concerns over regional geopolitical developments. Selling pressure was observed across major sectors, particularly banking, cement, energy, and fertiliser stocks.

According to market experts, rising international oil prices also contributed to investor anxiety, with Brent crude hovering near $108 to $109 per barrel. Higher oil prices have increased fears of inflationary pressure in Pakistan through rising fuel and energy costs.

Key index-heavy stocks including United Bank Limited, Lucky Cement, Engro Holdings, Habib Bank Limited and Hub Power Company remained under pressure and contributed significantly to the market decline.

Analysts noted that the market is likely to remain volatile and headline-driven in the coming days, with investor focus centred on developments related to US-Iran negotiations and the situation around the Strait of Hormuz.

Overall trading volume declined to 1.02 billion shares compared to 1.10 billion shares traded in the previous session. Among actively traded stocks, Cnergyico PK led the volumes chart.