The Pakistan Stock Exchange (PSX) witnessed a sharp sell-off as the benchmark KSE-100 index plunged more than 1,600 points during early trading, driven by rising geopolitical tensions and investor uncertainty. The steep decline reflected panic selling at the opening bell, with the index dropping nearly 1,680 points within minutes.

Market sentiment remained fragile as escalating tensions in the Middle East, particularly linked to US rhetoric and delays in ceasefire developments, weighed heavily on investor confidence. Analysts noted that fears of further conflict kept investors on the sidelines, triggering widespread selling across key sectors.

Despite the initial plunge, the market showed signs of recovery later in the session as expectations grew around possible diplomatic progress involving Pakistan. The index rebounded from its intraday low and managed to recover some losses, even briefly entering positive territory before closing with modest gains.

Trading remained volatile throughout the day, with significant fluctuations between intraday highs and lows. Experts advised investors to adopt a cautious approach, noting that market direction will largely depend on developments in the Middle East conflict.

The session highlights the sensitivity of Pakistan’s stock market to global geopolitical developments, particularly those impacting oil prices and economic stability.