KARACHI: Equities fell like ninepins on the Pakistan Stock Exchange (PSX) on Wednesday as geopolitical uncertainty and the resurgence of oil prices following the US air strikes on Iran, which put the ceasefire on the verge of collapse, rattled the market, prompting panic selling and wiping out a staggering Rs474 billion from the market capital in a single session.
The benchmark KSE-100 index came under intense selling pressure, touching an intraday low of 6,751 points at 179,504.35 before settling at 181,629.37, down 4,626.18 points, or 2.48 per cent.
The decline was also fuelled by broad-based profit-taking after the market’s recent rally, as investors opted to lock in gains despite an otherwise supportive macroeconomic backdrop.
Topline Securities Ltd said the local bourse witnessed a bloodbath as panic selling gripped the market following renewed geopolitical tensions in the Middle East.
Index plunges 4,626 points as Mideast situation triggers panic-selling
Investor sentiment turned sharply negative after US President Donald Trump declared the ceasefire with Iran effectively over, while fresh air strikes on Iran reignited fears of a broader regional conflict. The escalation also pushed international crude oil prices higher, further dampening investor sentiment and triggering a broad-based risk-off move across the market.
Heavyweight stocks United Bank, Fauji Fertiliser, Engro Holdings, Lucky Cement, Hub Power, Habib Bank, Pakistan Petroleum, Oil and Gas Development Company, Mari Energies, and MCB Bank emerged as the biggest drags on the benchmark, collectively shaving approximately 2,331 points from it.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX recorded a bearish session as investor sentiment turned sharply negative following an exchange of strikes over the past 24 hours, including attacks on oil ships passing through the Strait of Hormuz.
Nevertheless, value hunters emerged in the final trading hours, engaging in selective buying that helped the market recover and close above the key psychological level of 180,000.
Panic-selling was reflected in trading volume, which surged 57.49pc to 1.54 billion shares, and turnover rose 36.60pc to Rs62.4 billion. WorldCall Telecom led the volume chart with 220.4 million shares traded.
Analysts state that PSX is once again affected by geopolitical developments. Moving forward, the situation in the Middle East is expected to be the primary driver of market trends.
Published in Dawn, July 9th, 2026
