Pakistan Stock Exchange recovers with 4000 points after historic single-day dip

2026-03-03 - 05:53

KARACHI – The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, reflecting renewed investor confidence, a day after experiencing an unprecedented single-day plunge of over 16,000 points, triggered by heavy sell-offs amid escalating Iran-US tensions. During intraday trading, the KSE-100 index surged by 4,132 points, reaching 156,106 points, compared to the previous session’s close of 151,972.99 points. However, the gains were trimmed as cautious trading prevailed, with the index ultimately settling at 153,504.21 points, up by 1,531.22 points. The market’s volatility comes in the wake of the assassination of Iran’s Supreme Leader, Ayatollah Ali Khamenei, in airstrikes conducted by the US and Israel. This event has sparked widespread instability in the Middle East, led to a sharp downturn in global equity markets, and triggered a surge in oil and gas prices. Market experts warned that volatility is likely to continue until the geopolitical situation in the region stabilizes. Investors remain on edge, closely monitoring developments in the Middle East for further market implications. Meanwhile, Oil prices increased for the third consecutive day on Tuesday, driven by growing concerns over the escalating US-Israel conflict with Iran and potential disruptions to shipping routes through the Strait of Hormuz, a crucial passage for oil exports. Brent crude futures rose by $1.70, or 2.2%, reaching $79.44 per barrel by 0400 GMT. On Monday, the price had briefly hit $82.37, the highest level since January 2025, before settling with a 6.7% gain, according to Reuters.