PSX: KSE-100 sheds over 200 points in early trade

The Pakistan Stock Exchange (PSX) experienced a significant downturn in early trading on Tuesday, with the KSE-100 Index falling over 200 points. The decline was triggered by heightened concerns over a prolonged conflict in the Middle East, following Iran's threat of retaliation against any new US attacks on its assets. At 9:45 am, the index stood at 173,411.59 points, a decrease of 224.48 points or 0.13%.

Selling was prominent in key sectors like automobile assemblers, cement, commercial banks, and OMCs. Major index-heavy stocks such as PSO, MARI, POL, MEBL, NBP, and UBL also traded in the red. On Monday, the PSX faced heavy selling pressure across major sectors, causing the index to decline as investors remained cautious, leading to further selling in commercial banks, oil and gas, and cement stocks.

The KSE-100 Index dropped 1,692.74 points, or 0.97%, closing at 173,636.08 points. Internationally, the yen strengthened on Tuesday, while Asian markets faltered due to mixed regional economic data and Iran's fresh threats in the Persian Gulf, causing oil prices and bond yields to rise. Japan's Nikkei 225 experienced fluctuations before closing up 0.2%, as the yen surged by 0.6% to 153.51, its highest level since February 18.

The MSCI's Asia-Pacific index outside Japan also gained 0.2%, driven by a 1.2% increase in the KOSPI. S&P 500 e-mini futures declined 0.1% after a US holiday on Monday. Oil prices continued to rise for the third consecutive day as trading restarted in Asia, with Brent crude futures increasing by 0.04% to $97.04 a barrel, following Monday's six-week high.

Iran's threat to retaliate against any new US attacks, targeting energy infrastructure across the Gulf, including US oil and gas interests, was a significant contributing factor. This report provides an update on the PSX's intraday performance.