Pakistan’s stock market fell by about 1,000 points on Tuesday. Fears tied to rising geopolitical stress, connected to fighting in the Middle East, made many investors cautious.
At the Pakistan Stock Exchange, the KSE-100 Index closed at 172,642.16. That was down 993.91 points, or 0.57%, compared with the prior close of 173,636.07.
The market stayed under pressure during the entire trading session, reaching an intraday peak of 173,736.19 points before falling to a low of 171,490.63 points.
Independent investment and economic analyst AAH Soomro linked the weak market sentiment to higher energy prices amid escalating tensions between Iran and the United States, as well as the Houthis’ attacks on Saudi Arabia’s energy infrastructure.
“Oil at $100 is keeping a lot of people unexcited and keeping fresh money away,” he added.
Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa said trading activity remained largely subdued, while elevated oil prices continued to weigh on investor confidence.
“With volumes substantially lower than usual, the market remains directionless,” he added.
On Tuesday, Yemen’s Houthis launched attacks on four cities in southern Saudi Arabia, injuring more than 70 people and setting several oil facilities on fire, in what appeared to be a significant escalation in the six-month-long Middle East conflict.
The Houthis claimed to have carried out a large-scale operation deep inside Saudi territory. Drones and missiles were used to target a Saudi airbase in the southern city of Khamis Mushair, along with facilities linked to Saudi Arabia’s state-owned oil company in nearby Abha, Najran near the Yemeni border and Jazan, a key port on the Red Sea.
Following a period of relative calm in August, fighting in the Gulf has intensified again, with Iran and the US exchanging attacks and global oil prices climbing back to levels not seen since July. Brent crude prices rose by more than 2% on Tuesday, surpassing $99 per barrel.
