Trading at the Pakistan Stock Exchange (PSX) slumped sharply on Wednesday as caution gripped investors amid escalating geopolitical tensions, particularly between the United States and Iran, and fears of a potential US strike on Tehran that have rattled markets and lifted oil prices.

The benchmark KSE-100 index fell 1,381.69 points, or 0.75% to close at 182,569.82, after swinging between an intraday high of 184,726.60 and a low of 182,369.87. Profit booking after recent gains, coupled with persistent selling, kept market sentiment subdued throughout the session.

Analysts believe the cautious mood reflected investors locking in gains and shying away from fresh exposure as regional uncertainty deepened, keeping the local bourse under pressure for most of the day.

KTrade equities trader Ahmed Sheraz observed that PSX closed the session under pressure, with the benchmark KSE-100 index settling at 182,569 points, down 1,381 points or 0.75% on a day-on-day basis.

Market sentiment remained cautious throughout the session, primarily due to escalating geopolitical tensions between Iran and the US. Uncertainty surrounding a potential strike kept investors on the sidelines, while regional Asian markets also remained under pressure, with PSX following the broader trend.

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Total volumes clocked in at 444 million shares. Sector-wise, selling was broad-based across banks, cements, fertilisers, technology, power, and pharma stocks. On a scrip-wise basis, notable pressure was observed in United Bank, MCB Bank, Fauji Fertiliser, Lucky Cement, Hub Power, Habib Bank, Pakistan Telecommunication, National Bank, and Systems Limited, he added.

Oil and gas stocks were the sole exception, supported by expectations of higher global oil prices, which helped Oil and Gas Development Company and Pakistan Petroleum to close in positive territory.

Looking ahead, the market is expected to remain range-bound and volatile in the near term until greater clarity emerges on the geopolitical front. From a longer-term perspective, Sheraz anticipated the overall market outlook to remain intact and advised investors to remain cautious while gradually accumulating quality blue-chip stocks on dips.

Overall trading volume remained nearly flat at 1.034 billion, compared with Tuesday’s 1.037 billion. The value of traded shares stood at Rs65.9 billion.

Shares of 483 companies were traded. Of these, 90 rose higher, 352 fell, and 41 remained unchanged. K-Electric was the volume leader with trading in 56.3 million shares, losing Rs0.02 to close at Rs6.33.