PSX witnesses negative trend due to Middle East tensions

Massive selling pressure was witnessed at the Pakistan Stock Exchange (PSX) on Tuesday as tensions between the US and Iran escalated, reported 24NewsHD TV channel

As the trading was suspended at 3.38 pm, the benchmark index was hovering at 173,518.81, down by -6408.23 points or -3.69%.

Across-the-board selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, OMCs and power generation. Index-heavy stocks, including MARI, OGDC, PPL, HUBCO, MCB, MEBL and UBL, traded in the red.

On Monday, PSX started the week on a bearish note as escalating geopolitical tensions in the Middle East triggered widespread selling, dragging the benchmark KSE-100 Index below the 180,000-point mark amid heightened investor concerns over regional stability.

The benchmark KSE-100 Index declined by 2,314.73 points, or 1.27%, to close at 179,927.05 points.

Globally, stocks ​swung between gains and losses, and oil hit a one-month high in early Asian trading on ‌Tuesday after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz.

In a volatile start to the session, MSCI’s broadest index of Asia-Pacific shares outside Japan ​rose 0.4%, led by a 2.2% gain for Korean shares.

Japan’s Nikkei 225 was up 0.2%, while ​S&P 500 e-mini futures nudged 0.1% lower.

Brent crude futures climbed 2.6% to $85.50 a barrel, their ⁠highest since mid-June, as trading resumed in Asia.

Markets were also rattled by hawkish comments on Monday from Federal Reserve ​Governor Christopher Waller, who said the U.S. central bank may need to raise interest rates “in the near term” if ​coming data show inflation continuing well above the 2% target.

Overnight, stocks on Wall ​Street sold off and oil futures surged more than 9% as conflict between the United States and Iran re-ignited, once again ‌throttling the ⁠flow of goods through the Strait of Hormuz.

Reporter: Kawish Memon