KARACHI: The Pakistan Stock Exchange showed signs of resilience on Tuesday, as the KSE-100 Index rebounded more than 1,000 points in early trade, easing investor nerves after Monday’s historic collapse. The index had gained 1.97 percent from its previous close of 151,972.99 points, marking a significant rebound after yesterday’s drop of more than 16,000 points, providing a glimmer of hope for investors amid ongoing concerns regarding the broader economic landscape.
Experts and analysts said the substantial sell-off on Monday was precipitated by a confluence of factors that rattled investor confidence. Geopolitical tensions and domestic violence took center stage, with rising confrontations between the United States and Iran leading to fears of a broader military conflict in the Middle East.
The U.S. and Israel’s airstrikes against Iran as well as series of protests from Karachi to Gilgit-Skardu sparked alarm, causing many investors to reconsider their positions in the market.
The recent assassination of Ali Khamenei, Iran’s supreme leader, in U.S. and Israeli airstrikes has shaken the Middle East, causing a significant decline in global equity markets and driving up oil and gas prices. The situation has worsened with the closure of the Strait of Hormuz and Iran’s aggressive actions against oil tankers attempting to bypass the embargo, further escalating concerns.
These events have stoked fears of supply disruptions as Tehran takes retaliatory measures.
It is pertinent to mention that in a shocking escalation, violence broke out in Karachi, where U.S. Marines at the American consulate opened fire, resulting in the deaths of at least 10 people. This incident fueled widespread anger and led to large-scale protests, with crowds staging sit-ins to voice their outrage. Concurrently, protests erupted in multiple cities, including Gilgit, Skardu, Islamabad, and Lahore, with confrontations escalating to violence between demonstrators and law enforcement.
Exclusive: US Marines opened fire on demonstrators during the storming of the Karachi consulate over the weekend, two US officials said — a rare use of force at a diplomatic post that could sharply escalate tensions in the country amid widespread protests over the killing of…
— Reuters (@Reuters) March 3, 2026
The internal unrest across the country compounded concerns about domestic stability, further undermining the confidence of already jittery investors.
Experts believe that the ongoing conflict is complex and involves multiple nations, suggesting that volatility may persist until there is a clearer resolution. Despite these challenges, trading volumes have remained robust, with 112,224,609 shares exchanged, valued at 8,762,351,732.
