Pakistan stocks drop by over 6,400 points in single day

2026-01-29 - 10:01

KARACHI – Bears on Thursday took control of the Pakistan Stock Exchange (PSX) as it has dropped by over 6,000 points due to rising tensions between the US and Iran. The KSE-100 index shed by 6419 points to drop to 181,961 points compared to previous close of 188,380.38 points as investors opt for profit-taking due to the regional tensions. The development comes as the tensions in the Middle East (ME) have escalated sharply as the United States’ advanced aircraft carrier strike group, led by the USS Abraham Lincoln, has entered the region’s maritime boundaries. The move further heightenined the concerns of a possible military confrontation with Iran. According to US media reports, the carrier strike group comprises fighter jets, missile cruisers and state-of-the-art destroyers, all placed on high operational readiness for any potential action. American sources, as reported by the international media, said President Donald Trump is reviewing multiple military options against Iran. However, Washington’s allied countries reportedly urged the US administration to delay any immediate military action and pursue diplomatic channels. Despite these calls, the US military officially confirmed its presence in the region, citing the need to safeguard American interests and regional stability. The Arab media reported that the US Air Force is preparing to conduct large-scale military exercises in the Middle East, a move that could further intensify the already volatile situation.