PSX drops over 4,600 points as Gulf tensions rise

The Pakistan Stock Exchange (PSX) fell sharply on Wednesday after the US military launched airstrikes on Iran, increasing concerns about tensions in the Middle East.

The benchmark KSE-100 Index dropped by 4,626.19 points, or 2.48%, to close at 181,629.36.

Selling was seen across major sectors, including automobiles, cement, banks, fertilizers, oil marketing companies, and power generation. Heavyweight stocks such as HUBCO, MARI, OGDC, UBL, and PPL also ended the day lower.

On Tuesday, the market had already declined by 1,199.14 points after investors booked profits when the KSE-100 Index traded near its record high. Despite the fall, hopes of strong corporate earnings had helped limit losses.

Meanwhile, global oil prices rose by nearly 2% after the US airstrikes on Iran and the return of sanctions on Iranian crude sales. Investors are worried that the fragile ceasefire could break down and affect oil supplies from the Middle East.

Brent crude rose to $75.54 per barrel, while US West Texas Intermediate (WTI) crude increased to $71.81 per barrel.