PSX slides 1,900 points as Middle East tensions dampen sentiment
The KSE-100 index fell about 1,900 points (1.1%) amid heightened US‑Iran tensions and rising oil prices, prompting profit‑taking across the market.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Middle East tensions lift oil prices and hurt market sentiment, leading to a negative outlook for Oil & Gas and overall market – avoid buying.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- MarketsNegatively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas, Markets — Negative · Do not buy. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Middle East tensions lift oil prices and hurt market sentiment, leading to a negative outlook for Oil & Gas and overall market – avoid buying.
Full Story
Open on Dawn## Market decline
The benchmark KSE‑100 index dropped 1,904.31 points, or 1.10%, to 171,731.76 at 1:39 pm on Tuesday, down from the previous close of 173,636.07.
## Drivers of the sell‑off
Research director Awais Ashraf of AKD Securities said the prolonged United States‑Iran confrontation is weighing on investor confidence. He added that the surge in global oil prices is adding further pressure on the market.
## Oil price backdrop
Brent crude futures rose $2.00 (2.06%) to $99.00 a barrel, while US West Texas Intermediate climbed $2.93 (3.2%) to $94.41 a barrel by 1 pm PKT. Brent briefly touched $99.22, its highest since 24 July, and WTI reached $94.60, the highest since 8 June.
## Regional developments
Recent Houthi attacks on Saudi energy facilities have intensified regional tensions, pushing oil to multi‑week highs. The broader Middle‑East uncertainty and political risk have spurred profit‑taking across sectors this week.
## Recent market context
On Monday, the PSX could not hold a modest weekend recovery, slipping 1,692.74 points to close at 173,636.08 after a brief rally.
## Outlook
Despite the negative sentiment, Ashraf noted that strong macro‑economic indicators and Pakistan’s recent Eurobond issuance provide a cushion for policymakers compared with earlier shocks.