The Pakistan Stock Exchange (PSX) faced a downturn on Thursday as rising tensions in the Middle East unsettled investors. The situation worsened after Iran issued a strong response to proposals from the United States regarding a possible ceasefire, rejecting both the offer and any immediate talks.
By 11:25 am, the benchmark KSE-100 index had dropped by 2,520.91 points, falling to 155,792.53. This represented a decline of 1.59 percent compared to the previous closing level of 158,313, reflecting a negative trend in the market.
Selling pressure was observed across several key sectors, including automobile manufacturing, cement, commercial banking, oil and gas exploration, oil marketing companies, and power generation. Major companies such as MCB, MEBL, NBP, MARI, OGDC, PPL, POL, PSO, and HUBCO all recorded losses during the trading session, contributing to the overall market decline.
The downturn was largely influenced by geopolitical developments, as Iranian authorities described the US ceasefire proposal as “unbalanced” and based on unrealistic demands. According to Iranian officials, the proposal in its current form is not acceptable.
A senior Iranian official, speaking to state media, stated that any ceasefire would only be considered if it aligns with Iran’s own conditions. The official emphasized that negotiations would not begin unless those terms are met.
Furthermore, Iran made it clear that its defensive military actions would continue until its demands are fulfilled, adding to the uncertainty in global markets and affecting investor confidence at the PSX.
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