Selling grips PSX, KSE-100 tumbles over 2% as US reimposes naval blockade on Iran

Massive selling pressure was observed at the Pakistan Stock Exchange (PSX) as tensions between the US and Iran escalated, with the benchmark KSE-100 Index shedding over 3, 600 points in the opening minutes of trading on Tuesday. At 9: 43am, the benchmark index was hovering at 176, 309. 50, down by 3, 617. 54 points or 2. 01%. Across-the-board selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, OMCs and power generation. Index-heavy stocks, including MARI, OGDC, PPL, HUBCO, MCB, MEBL and UBL, traded in the red. On Monday, PSX started the week on a bearish note as escalating geopolitical tensions in the Middle East triggered widespread selling, dragging the benchmark KSE-100 Index below the 180, 000-point mark amid heightened investor concerns over regional stability. The benchmark KSE-100 Index declined by 2, 314. 73 points, or 1. 27%, to close at 179, 927. 05 points. Globally, stocks ​swung between gains and losses and oil hit a one-month high in early Asian trading on ‌Tuesday after President Donald Trump said the U. S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz. In a volatile start to the session, MSCI’s broadest index of Asia-Pacific shares outside Japan ​rose 0. 4%, led by a 2. 2% gain for Korean shares. Japan’s Nikkei 225 was up 0. 2%, while ​S&P 500 e-mini futures nudged 0. 1% lower. Brent crude futures climbed 2. 6% to $85. 50 a barrel, their ⁠highest since mid-June, as trading resumed in Asia. Markets were also rattled by hawkish comments on Monday from Federal Reserve ​Governor Christopher Waller, who said the U. S. central bank may need to raise interest rates “in the near term” if ​coming data show inflation continuing well above the 2% target. Overnight, stocks on Wall ​Street sold off and oil futures surged more than 9% as conflict between the United States and Iran re-ignited, once again ‌throttling the ⁠flow of goods through the Strait of Hormuz. Fed funds futures are pricing in an implied 43. 3% probability ​of a 25-basis-point hike at ​the U. S. central bank’s ⁠next two-day meeting on July 28-29, compared to a 34. 2% chance on Friday, according to the CME Group’s FedWatch tool. This is an intraday update

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