The benchmark KSE-100 index at the Pakistan Stock Exchange fell sharply by more than 4,000 points during intraday trading on Thursday, as investor sentiment weakened following remarks by Donald Trump on the ongoing conflict with Iran.
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The KSE-100 index dropped 4,073.85 points, or 2.62%, to 151,505.26 points by around 12:15pm, reversing gains recorded over the previous two sessions.
The market opened on a bearish note, plunging to an intraday low of 150,022.43 points at 9:34am before recovering partially to touch a high of 152,052.19 at 10:34am.
The decline followed Trump’s 19-minute prime-time address from the White House, in which he signaled that US military operations against Iran could continue for another two to three weeks, dampening hopes for a swift resolution to the conflict.
Global markets reacted negatively to the remarks, with oil prices surging and equities declining across major financial centers. Analysts said the absence of a clear timeline for de-escalation heightened uncertainty.
Stephen Innes of SPI Asset Management noted that the US president’s message pointed to “unfinished business,” which tends to fuel volatility in financial markets.
Equity markets across Asia and Europe also came under pressure. Seoul’s stock market, which had surged more than 8% a day earlier, dropped over 4%, while Tokyo, Hong Kong, Shanghai, Mumbai, Singapore, Taipei, Bangkok, Jakarta, and Sydney all recorded losses. Major European markets, including London, Paris, and Frankfurt, also traded lower.
Meanwhile, global oil prices spiked sharply. Brent crude surged nearly 7% to $108.15 per barrel, while West Texas Intermediate rose more than 6% to $106.75, reflecting heightened geopolitical risk premiums.
Analysts said continued uncertainty surrounding the Middle East conflict could keep markets volatile in the near term, particularly for emerging economies like Pakistan.
