KSE-100 falls sharply as geopolitical concerns weigh on investor sentiment

KARACHI: Selling pressure dominated trading at the Pakistan Stock Exchange on Tuesday as investor sentiment weakened amid rising geopolitical uncertainty, leading to a sharp drop in the benchmark index early in the session.

The KSE-100 Index fell by 1,679.87 points within the opening minute of trade, underscoring strong bearish momentum from the outset. Market data showed the index at 150,408.24 at the time of reporting, down 799.57 points, or 0.53%, from the previous close of 151,207.81.

During the session, the benchmark touched an intraday high of 150,719.91 and a low of 149,129.41, reflecting continued volatility in the market. Trading activity remained active, with volume recorded at 101,357,271 shares and total traded value at 7,434,818,860.

The decline came as concerns linked to Donald Trump’s increasingly aggressive rhetoric and delays in ceasefire developments affected market sentiment and prompted early selling.

AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune that the KSE-100 had remained under pressure since the opening bell because the possibility of escalation in the Middle East war and the approaching deadline for a deal had kept investors on the sidelines.

He said investors were expecting a positive development and added that the market was likely to recover its losses.

Later in the session, some recovery was seen on hopes that the government of Pakistan could make progress in its diplomatic efforts. At that stage, the KSE-100 Index was trading at 151,116.56, still lower by 91.25 points, or 0.06%, during the session.

Trading was still underway when the report was filed, with analysts monitoring whether the selling trend would continue or whether bargain-hunting investors would help steady the market.

Volatility marks the trading session

The session reflected a highly volatile pattern, with the market moving sharply lower at the open before trimming part of the losses later in the day. The early plunge of more than 1,600 points highlighted the intensity of the sell-off as investors reacted to external developments.

The market’s subsequent partial rebound indicated that some participants were encouraged by expectations tied to Pakistan’s diplomatic efforts, although the benchmark remained in negative territory during the session.

The day’s trading pattern showed that geopolitical developments remained a key driver of sentiment, while investors continued to watch for signs of progress that could support a broader recovery.