KARACHI: The Pakistan Stock Exchange (PSX) opened lower on Wednesday, with the benchmark KSE‑100 Index shedding 580 points, or 0.34 percent, to 172,575.75 as investors reacted to the absence of U.S.–Iran negotiations in Islamabad, at least for the moment.
By 10:40 a.m., the broader All‑Share Index was down 265 points to 103,083.76, while the KSE‑30 fell 180 points to 52,440.26. The KMI‑30 slipped 623 points to 247,521.29, and the Banking Index dropped 261 points, or 0.53 percent, to 49,030.45.
Trading activity remained heavy, with over 342 million shares changing hands in 141,830 transactions, generating a value of Rs12.3 billion. Out of 564 active symbols, 166 advanced, 252 declined, and 146 remained unchanged, reflecting a market tilted toward caution.
The downturn comes a day after optimism lifted equities when both delegations were expected to arrive in Islamabad for a second round of peace talks. However, with no talks taking place on Wednesday and public statements from Tehran and Washington hardening positions, investor sentiment has cooled.
Market analysts believe adding to the unease is the continued closure of the Strait of Hormuz as a result of the U.S. blockade, which has disrupted global energy flows and heightened geopolitical risks. Analysts noted that the blockade is compounding uncertainty for Pakistan’s economy, already sensitive to swings in oil prices and regional tensions.
“Markets are adjusting to the reality that diplomacy may take longer than anticipated, while the blockade keeps energy markets volatile,” a brokerage note observed.
Despite the setback, traders pointed out that underlying liquidity remains strong, supported by recent inflows from Saudi Arabia into Pakistan’s reserves. Still, the immediate mood on the trading floor reflected disappointment that high hopes for dialogue have, at least for now, been lost.
