Renewed investor caution gripped the Pakistan Stock Exchange on Wednesday as rising regional tensions triggered widespread selling, dragging the benchmark KSE-100 Index down by more than 1,300 points.
At close, the index stood at 155,777.21, reflecting a drop of 1,354.88 points, or 0.86%.
Losses were recorded across major sectors, including automobile assemblers, cement producers, commercial banks, oil and gas exploration firms, oil marketing companies, and power generation. Heavily weighted stocks such as Oil and Gas Development Company (OGDC), Mari Petroleum Company Limited (MARI), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Hub Power Company (HUBCO), Habib Bank Limited (HBL), Meezan Bank Limited (MEBL), and National Bank of Pakistan (NBP) all traded lower.
The downturn followed a sharp rally a day earlier, when strong value-hunting in blue-chip sectors helped the market stage an impressive recovery from the previous session’s steep losses. On Tuesday, the KSE-100 Index surged 5,159.10 points, or 3.39%, to settle at 157,132.10, reflecting a marked improvement in investor sentiment.
In global currency markets, the US dollar advanced to a three-month peak during early Asian trading on Wednesday. Investors moved away from the euro amid mounting concerns that escalating tensions in the Middle East could drive energy prices higher for a prolonged period.
The euro slipped 0.3% to $1.1581, marking its third straight day of decline after touching its weakest level since late November. The drop came after data released Tuesday showed eurozone inflation in February exceeded expectations, even before the onset of the Iran-related conflict.
