Pakistan’s benchmark KSE 100 index ended Wednesday’s trading session sharply lower, losing more than 1,300 points despite showing signs of recovery earlier in the day.
The index closed down 1,354.88 points, reversing the gains it had briefly achieved during mid-morning trading.
At the start of the session, the market experienced significant volatility. Around 9:20am, the KSE-100 index plunged by more than 2,300 points, touching an intraday low of 154,790.73. However, the market managed to rebound partially within the next hour, climbing back into positive territory by 10:30am, when it was up 381.98 points.
The sharp fluctuations indicate that investor sentiment remains fragile after a turbulent start to the trading week.
On Tuesday, the market had recorded a strong rebound, gaining 5,159.10 points to settle at 157,132.09. That rally followed Monday’s historic decline of more than 16,000 points, which marked the largest single-day drop in the history of the Pakistan Stock Exchange (PSX).
Market analysts say the recent volatility is largely tied to rising geopolitical tensions and uncertainty in global markets.
Escalating tensions involving the United States, Israel, and Iran have pushed international oil prices to their highest levels in nearly 19 months. The surge in energy prices has added pressure on global equities and heightened concerns among investors about the possibility of a prolonged regional conflict.
Brokerage firm Topline Securities noted that overall market sentiment remained weak as geopolitical risks continued to weigh on investor confidence.
According to the brokerage house, most major Asian stock markets also traded lower, and Pakistan’s stock exchange moved in line with the broader regional trend as investors adopted a risk-averse approach.
During Wednesday’s session, the index traded within a wide range between 157,962.47 points and 154,790.73 points, reflecting both recovery attempts and persistent selling pressure.
Despite the instability, analysts believe the market may gradually stabilise after the dramatic decline seen earlier this week. However, they caution that the pace of recovery will depend largely on developments in global markets, particularly oil prices and geopolitical conditions.
Investors are expected to remain cautious in the near term while monitoring international developments and their potential impact on financial markets.