PSX wipes out gains as KSE Index dips 3,700+ points amid Iran War turmoil

2026-03-06 - 12:33

KARACHI – Pakistan Stock Exchange witnessed more losses on Friday amid geopolitical tensions. The trading started as a steady trading session turned volatile, with selling pressure wiping out earlier gains and sending the benchmark index tumbling by more than 3,700 points. Market chaos gripped Pakistan Stock Exchange as investors panicked and sent benchmark index tumbling 2.3% amid deepening fears of geopolitical escalation in Gulf. The session opened with brief optimism, the index sprinted to an intraday high of 161,435.83, but the mood quickly soured as relentless selling pressure wiped out gains and pushed the market into freefall. Stock Exchange Update UBL, ENGROH, FFC, LUCK, HUBC, MEBL, SYS, OGDC, and BAFL bore the brunt of the carnage, collectively dragging the index down by 2,124 points. The rout followed an extraordinary rally just a day earlier, when the index surged by over 5,400 points in one of its most powerful single-session rebounds in recent memory, closing at 161,210.68 after a 3.49% jump. But the euphoria proved short-lived as global uncertainty returned with a vengeance. International markets were equally shaken. Asian equities suffered steep losses and were on track for their worst weekly decline in six years as investors fled to safety. Oil prices skyrocketed, poised for their largest weekly jump in three years, as the Middle East conflict rattled energy markets and stoked fears of inflation. Central banks now face growing pressure to consider tighter monetary policies if energy costs continue to surge, raising the specter of higher borrowing costs and reduced economic growth. US Treasury yields jumped roughly 18 basis points for the week — their sharpest rise in nearly a year — while the US dollar strengthened as traders sought safer assets. Oil markets remained highly volatile: Brent crude hovered around $83 per barrel after previously collapsing to $69, and US crude surged to a 20-month high before retreating. Both benchmarks were still on course for weekly gains of more than 15%, their biggest rise since February 2022. The selloff spread across Asia. The MSCI Asia-Pacific index outside Japan dropped 0.4% and was headed for a 6.6% weekly loss — the steepest in years. Stock markets in Japan and South Korea also crumbled, with South Korea facing its worst weekly performance in six years as profit-taking and risk aversion dominated trading. Back home, the Pakistani rupee offered a glimmer of relief, inching higher by one paisa against the US dollar to close at 279.40 in inter-bank trading. However, trading activity on the exchange collapsed. Volume on the all-share index plunged to 363.14 million shares from 723.88 million in the prior session, and the value of shares traded nearly halved to Rs23.11 billion from Rs35.18 billion. Market leaders reflected mixed fortunes amid the turbulence. K-Electric Ltd emerged as the most traded stock with 36.92 million shares changing hands, followed by Cnergyico PK with 22.42 million shares and Unity Foods Ltd with 19.05 million shares. Out of 468 companies actively traded, only 105 managed to post gains, while a staggering 311 declined and 52 remained unchanged. Bulls push PSX above 161,000 as KSE-100 recovers by over 5,000 points