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ISLAMABAD: The Pakistan Stock Exchange's (PSX) benchmark index continued its downward trend for a second consecutive day on Tuesday, losing more than 3,000 points during early trade. The KSE-100 index fell by 3,464.89 points to 176,462.15 points from the previous close of 179,927.04, according to Dawn. Later reports indicated the index extended losses, touching an intraday low of 4,588.79 points by 12:30pm.

The decline came as global oil prices surged nearly 3 per cent on Tuesday to their highest in four weeks. The rise was linked to the US reimposing its naval blockade of Iran and both countries stepping up attacks in the Strait of Hormuz, heightening uncertainty about energy flows. Brent crude futures were up $1.50 (1.8 per cent) to $84.80 per barrel, while US West Texas Intermediate crude rose $1.70 (2.2 per cent) to $79.84 a barrel.

Coverage Comparison

Dawn, the sole source of this report, noted that the market had already come under pressure on Monday, when investors grew nervous over developments in the Strait of Hormuz, dragging the benchmark index below the psychological barrier of 180,000 points. That session saw the index close at 179,927, down 2,314 points or 1.27 per cent.

In its reporting on Tuesday's early trade, Dawn initially described the loss as 'more than 3,000 points' but later revised this to 'more than 4,000 points' in an updated version of the article. The earlier reports placed the loss at 3,464.89 points, while the later one mentioned an intraday low of 4,588.79 points.

The outlet also noted that the decline was exacerbated by broad-based profit-taking after the market's recent rally, with investors choosing to lock in gains despite an otherwise supportive macroeconomic backdrop.

Key Claims

  • The KSE-100 index lost more than 3,000 points during early trade on Tuesday, as reported by Dawn.
  • A later Dawn report indicated the index lost more than 4,000 points, touching an intraday low of 4,588.79 points.
  • The index dropped to 176,462.15 points from the previous close of 179,927.04.
  • Global oil prices rose nearly 3% to their highest in four weeks, with Brent crude at $84.80 per barrel and WTI at $79.84.
  • The decline was attributed to US-Iran tensions in the Strait of Hormuz.
  • Awais Ashraf, director of research at AKD Securities, said the market declined after the US reinstated its naval blockade of Iran.
  • The market's fall was exacerbated by profit-taking after a recent rally.

Perspectives

Market Analyst

Awais Ashraf, director of research at AKD Securities, commented on the decline, stating: "The decline is broad-based, with cyclical sectors witnessing the sharpest percentage losses amid heightened uncertainty over the medium-term outlook due to the emerging geopolitical situation." He linked the market's fall directly to the US reinstating its naval blockade of Iran.