PSX Bloodbath | Gold Prices Rise | Global Markets React To US-Iran Conflict | Dawn News English

Pakistan's stock market witnessed a massive sell-off on Tuesday with the benchmark SE100 index losing more than 6,400 points as renewed fighting between the United States and Iran shook investor confidence. The market opened in negative territory, 3,464.89 points by 10 a.m., falling to 176,462.15 points from its previous close of 179,927.04. Trading remained volatile with minor fluctuations during the day before a steep decline after 2.30 pm. By the close of trading, the benchmark index had settled at 173,518.81 points down 6,408.23 points or 3.56%. The sharp decline came as global oil prices climbed to their highest level in four weeks after the United States reimposed its naval blockade of Iran while both countries intensified attacks in the Strait of Hormuz, raising fresh concerns over global energy supplies. At 5 pm, Pakistan-time Brent crude futures had risen $2.89 or 3.47% to $86.19 per barrel while US West Texas Intermediate crude gained $1.53 or 1.96% to $79.67 a barrel. According to the report, oil prices are now at their highest level since the United States and Iran signed the Memorandum of Understanding to end the war on June 18. Brokerage house Topline Securities said the market's sharp sell-off was driven by heightened geopolitical tensions following what it described as the reported collapse of the interim peace arrangement between the United States and Iran. The firm said investors' sentiment deteriorated after reports that the US had reimposed a naval blockade and carried out airstrikes while Iran responded by targeting additional oil tankers transiting the Strait of Hormuz. According to Topline Securities, the escalation increased concerns over regional stability, possible disruptions to global oil supplies, and greater risk aversion across financial markets from tank fraud-based selling at the Pakistan Stock Exchange. The brokerage added that the largest negative contribution to the KSE100 index came from the United Bank Limited, Anglo Holdings, Foggy Fertilizer Company, Lucky Simon, and Misan Bank. Together, these five stocks raised 2,057 points from the benchmark index. Global financial markets also reflected investor caution. US stock futures traded mixed in choppy trading following President Donald Trump's announcement of the US naval blockade of Iran, while investors also assessed earnings reports from some of Wall Street's biggest banks. S&P 500 futures were down 2.1%. In early European trading, while Nasdaq futures remained 0.5% higher. European markets opened lower with the planned European Stocks 600 index slipping 0.4%. Treble and leisure stocks led the losses, falling around 2% as investors weighed the potential impact of escalating US Iran tensions on global businesses. Asian markets showed mixed performance. Chinese shares surged after June export and import data exceeded economists' expectations, closing 2.15% higher. South Korean stocks gained 0.7%, while Taiwan's benchmark index fell 1.42%. ING analysts said China's exports and imports had reached their highest level since the pandemic-scooped period of 2021, supported by continued strength in the sector. Meanwhile, Wall Street had also ended the previous trading session lower, with the S&P 500 falling 0.8% and the Nasdaq Composite declining 1.6%. In currency markets, the US dollar index slipped 0.1% to 101.16, although it remained close to its highest level of the month. Word prices rose 0.5% to $4,020.34. In Japan, the Nikkei 225 closed about 0.7% higher after Finance Minister Sasuke Katayama said the government may consider adjusting the investment strategy of the Government Pension Investment Fund if market conditions change significantly, although no further details were provided.