KARACHI – The Pakistan Stock Exchange (PSX) tumbled nearly two percent on Tuesday as the rising tensions between the US and Iran have sparked massive selling.
During intraday trading, the KSE-100 plunged 3,383.75 points or 1.88% to reach 176,543.29 points compared to previous close of 179,927.04 points.
Selling pressure was witnessed across major sectors of the market, with automobile manufacturers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies (OMCs), and power generation stocks all facing declines.
Several index-heavy shares, including MARI, OGDC, PPL, HUBCO, MCB, MEBL, and UBL, closed trading in negative territory.
On Monday, the benchmark KSE-100 opened the week on a bearish note, losing 2,314.73 points, a negative change of 1.27 percent, to settle at 179,927.05 points.
During the trading session, the ready market saw a total volume of 845.279 million shares, with the value of traded shares recorded at Rs35.551 billion.
This compared with the previous session’s turnover of 948.776 million shares worth Rs38.413 billion. The overall market capitalization fell to Rs20.290 trillion, down from Rs20.503 trillion recorded a day earlier.
Of the 497 companies that traded in the ready market, 128 recorded gains, 335 closed lower, while 34 remained unchanged, reflecting broad-based selling pressure across the exchange.
A day earlier, US President Donald Trump announced that US will assume responsibility for securing the Strait of Hormuz, declaring that Washington is “taking over” the strategic waterway and will serve as its “guardian.”
Trump said the Strait of Hormuz will remain open to international shipping “with or without Iran,” while announcing what he described as the reinstatement of an “Iranian blockade.” Under the proposal, Iranian vessels and customers would be barred from entering or leaving through the strait, whereas ships from all other countries would continue to enjoy unrestricted access.
Trump also unveiled a controversial plan to impose a 20% charge on all cargo transiting the waterway, arguing that the fee would reimburse the United States for the costs of providing security in one of the world’s most volatile maritime chokepoints.
The president further claimed that the United States had previously reached an agreement with Iran but alleged that Tehran failed to honor its commitments. He said the process of implementing the new policy would begin immediately.
If enacted, the proposal would represent a dramatic shift in U.S. policy toward the Strait of Hormuz, a critical global energy corridor through which a significant share of the world’s oil and liquefied natural gas supplies passes. The announcement is likely to trigger strong reactions from Iran, regional governments, and the international community.
