KARACHI: The stock market continued its bearish trend on Tuesday, driven by disappointing news regarding the current account deficit and escalating geopolitical tensions in the Middle East, which dragged the benchmark index below the 121,000 barrier.

According to brokerage Topline Securities, the Pakistan Stock Exchange (PSX) experienced a lacklustre trading session, reflecting the nervous sentiment prevailing across global markets. The benchmark KSE-100 index plunged by as much as 1,553 points during intraday trade before paring some losses to close at 120,465.93, marking a loss of 1,505.11 points or 1.23pc day-on-day.

Rising geopolitical tensions, particularly the escalating standoff between Iran and Israel, weighed heavily on investor confidence. The atmosphere of uncertainty prompted a risk-averse approach, leaving the market directionless for most of the session.

Heavyweight counters, including Engro Holdings, Packages Ltd, Pakistan Petroleum, Mari Energies, and United Bank, exerted significant downward pressure, collectively trimming 488 points from the index.

Ahsan Mehanti from Arif Habib Corporation said the share market fell across the board amid elevated Middle East tensions and investor concerns over dismal economic data, as the country incurred a $103 million current account deficit in May, following a positive trend in March and April, due to surging imports.

Ali Najib, the Deputy Head of Trading at AHL, observed that investor sentiment was expected to stay highly responsive to evolving geopolitical tensions, potentially fuelling market volatility. Nonetheless, the 120,000 level remains a strong support zone. Market participation sharply weakened as trading volume declined 38.6pc to 707.03 million shares, while the traded value decreased 23.97pc to Rs21.27 billion on a day-on-day basis.

Published in Dawn, June 19th, 2025