Lead

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index fell sharply on Wednesday, dropping over 4,600 points, after US President Donald Trump said the ceasefire with Iran was "over."

According to Dawn, the index dropped by 4,626.19 points, or 2.48 per cent, to close at 181,629.36 points from the previous close of 186,255.55. Another report from the same outlet cited a decline of 4,864.36 points, or 2.61 per cent, to stand at 181,391.19 points at 2:34pm.

Coverage Comparison

The two reports from Dawn present slightly different figures for the index's decline—one citing an intraday drop of 4,864.36 points, the other a closing decline of 4,626.19 points. Both agree on the overall narrative: the market declined sharply after Trump's statement, with an intraday low of 179,504.34, down by 6,751.21 points compared to the previous close.

The reports attribute the decline to Trump's remarks that the Pakistan-mediated memorandum of understanding to end the war with Iran was "over." They also note that investor sentiment weakened, reigniting concerns over potential disruptions to oil supplies from the Middle East.

Key Claims

  • The KSE-100 index fell by over 4,600 points on Wednesday, with intraday figures varying between 4,626.19 and 4,864.36 points.
  • The market reached an intraday low of 179,504.34, down 6,751.21 points from the previous close.
  • The decline followed US President Donald Trump's statement that the ceasefire with Iran was "over."
  • Awais Ashraf, director of research at AKD Securities, noted that investor sentiment weakened following Trump's comments, reigniting concerns over oil supply disruptions from the Middle East.
  • The market opened on a negative note amid heightened geopolitical uncertainty after US airstrikes on Iran in response to attacks on vessels transiting through the Strait of Hormuz.
  • Iran said it hit dozens of US military facilities in Bahrain and Kuwait in retaliation.

Market Context

Prior to Wednesday's slide, the PSX had experienced a bullish run. On Tuesday, the index snapped a five-day winning streak, falling by over 1,100 points to settle below the 187,000-point mark as investors resorted to profit-taking. That reversal came after economic optimism—driven by falling energy prices and a likely cut in the interest rate—had propelled the KSE-100 above 187,000 points on Monday, leading analysts to believe it might surpass its all-time high of 189,167 points from January.

According to Topline Securities Ltd, Tuesday's decline was driven by selling pressure across key sectors during the latter half of the session. The firm noted that investor sentiment remained cautious amid weakness in regional equity markets, prompting participants to lock in recent gains after the index's strong upward run.