The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index tumbled by over 4,600 points on Wednesday as US President Donald Trump said the ceasefire with Iran was “over”.

The KSE-100 index dropped by 4,626.19 points, or 2.48 per cent, to close at 181,629.36 points from the previous close of 186,255.55.

The market saw a sharp decline after 1:30pm, reaching an intraday low of 179,504.34, down by 6,751.21 points compared to the previous close.

The decline followed Trump’s statement that the Pakistan-mediated memorandum of understanding to end the war with Iran was “over”.

Awais Ashraf, director of research at AKD Securities, noted that investor sentiment weakened following Trump’s comments, reigniting concerns over potential disruptions to oil supplies from the Middle East.

He added that the market opened on a negative note amid heightened geopolitical uncertainty after US airstrikes on Iran in response to attacks on vessels transiting through the Strait of Hormuz.

Iran then said it hit dozens of US military facilities in Bahrain and Kuwait in retaliation.

On Tuesday, PSX snapped a five-day bullish streak, falling by over 1,100 points to settle below the 187,000-point mark as investors resorted to profit-taking following the market’s recent record-breaking rally.

The reversal came after economic optimism — driven by falling energy prices and a likely cut in the interest rate — propelled the KSE-100 index above 187,000 points on Monday, leading analysts to believe it might surpass its all-time high of 189,167 in January.

According to Topline Securities Ltd, yesterday’s decline was driven by selling pressure emerging across key sectors during the latter half of the session.

It noted that investor sentiment remained cautious amid weakness in regional equity markets, prompting participants to lock in recent gains after the KSE-100’s strong upward run over the past several sessions.