The Pakistan Stock Exchange (PSX)’s benchmark index KSE-100 continued its bearish momentum on Thursday, losing over 2,400 points.

KSE-100 declined by 2,405.93 points or 1.4 per cent to close at 169,173.37 points from the previous close of 171,579.30 points.

The bourse rose to an intraday high of 171,561.74 points shortly after opening and declined to an intraday low of 168,416.02 points at 1:27pm.

“Bears returned to centre stage as tensions flared around the Strait of Hormuz, where reports of blockades and vessel seizures rattled global sentiment. Meanwhile, Islamabad continues to await Iranian and American officials for expected peace talks, keeping uncertainty elevated,” Topline Securities said.

“Amid the risk-off mood, the benchmark index plunged to an intraday low of 3,163 points before settling at 169,173 — down 2,405 points (-1.40%) — as broad-based selling gripped the market,” it said.

It said that trading activity stayed relatively subdued, with volumes clocking in at 1,321 million shares and turnover at Rs. 30.8 billion. First National Equities Limited led the volume chart, with 286 million shares traded, it added.

Developments in the Middle East following a stalemate over holding a second round of US-Iran talks have continued to influence market sentiment.

On Wednesday, nervousness persisted on the PSX amid a resurgence in oil prices, as the chances of an end to war dimmed after both the US and Iran claimed the seizure of cargo ships in the Strait of Hormuz.

The market remained volatile throughout Wednesday, swinging in both directions, but ultimately closed in the red.

Amid uncertainty over the US–Iran talks, sentiment is likely to remain cautiously supportive yet highly fragile. Any progress could boost confidence, while delays or negative developments may trigger volatility, leaving markets largely headline-driven and swift to react to geopolitical cues in the near term.