The Pakistan Stock Exchange (PSX) came under renewed selling pressure on Tuesday as the KSE-100 index fell 1,920.49 points, or 1.11%, during midday trading.

The benchmark stood at 171,715.58 around 1:19pm.

The index opened lower and dropped 111.16 points, or 0.06%, to 173,524.91 at 9:34am.

The market briefly recovered around 10:04am, gaining 91.71 points. However, selling pressure intensified as trading continued.

The index reached an intraday high of 173,736.19 before falling to a low of 172,015.26.

Broad-Based Selling Hits Major Sectors

Selling affected several major sectors during the session.

Automobile assemblers, cement companies, commercial banks and oil marketing companies all came under pressure.

Investor sentiment remained fragile as markets monitored the rapidly changing Middle East conflict.

Concerns over a prolonged conflict have increased uncertainty for global markets. Investors also remain alert to possible disruptions to regional trade and energy supplies.

Middle East Conflict Raises Market Risks

Fire Breaks Out Near Karachi Mayor’s Office at KMC Headquarters

Tensions continued to influence investor sentiment as Iran maintained its opposition to US attacks.

Markets fear that further escalation could prolong the conflict and increase pressure on regional stability.

Reports of Houthi attacks on Saudi cities and energy facilities added to those concerns.

More than 70 people were reportedly injured in the attacks, raising fears that the conflict could spread across the region.

The developments have increased uncertainty around oil prices, shipping routes and regional trade.

Pakistan Faces External Account Concerns

Higher oil prices could create additional pressure for Pakistan.

The country relies heavily on energy imports. A sustained rise in global crude prices could therefore increase the import bill.

Investors are also watching the potential impact on inflation, foreign exchange pressures and Pakistan’s external account.

These concerns have encouraged investors to adopt a more cautious approach.

Trading Activity Remains Strong

Despite the sharp decline, trading activity remained active at midday.

Around 128.64 million shares changed hands, while the traded value reached approximately Rs7.94 billion.

The KSE-100 had closed at 173,636.07 in the previous session.

The market remained sensitive to geopolitical developments as trading continued.

Investors are likely to monitor any fresh escalation involving Iran, the United States, Saudi Arabia and other regional actors.

Further developments could determine whether selling pressure continues through the remainder of the session.