ISLAMABAD : Stocks extended losses on Tuesday, as a sharp rise in global oil prices and fresh uncertainty over the Middle East conflict kept investors under pressure.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched an intraday low of 176,131.80, down 3,795.24 points, or 2.11%, from the previous close of 179,927.04. Its intraday high stood at 178,112.04, still down 1,815 points, or 1.01%.
Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa told Geo.tv that: “Markets are reacting to a sharp rise in oil prices and the new uncertainty that has developed in the Middle East conflict and oil prices.”
“Result season is also around the corner, which will help determine market direction,” Mustafa said.
Oil prices rose nearly 3% on Tuesday to their highest level in four weeks as the United States reimposed its naval blockade of Iran and both countries stepped up attacks in the Strait of Hormuz, heightening uncertainty over energy flows.
Brent crude futures were last up $1.50, or 1.8%, at $84.80 per barrel at 0330 GMT, while US West Texas Intermediate crude rose $1.70, or 2.2%, to $79.84 a barrel.
Both contracts earlier rose more than $2 a barrel before paring some gains. Brent had surged 9.6% in the previous session, its biggest daily gain since May 2020.
The US military carried out a third consecutive night of strikes against Iran on Monday, while US President Donald Trump reinstated a blockade of Iranian shipping and proposed charging a 20% fee to guard the Strait of Hormuz.
Amid the strikes, two United Arab Emirates tankers were hit by two Iranian cruise missiles in the southern lane of the Strait of Hormuz in Omani territorial waters, the UAE Ministry of Defence said on Monday. One Indian crew member was killed and eight others were wounded.
Shipping data on Monday also showed the number of tankers transiting the Strait of Hormuz fell in the past day to the lowest level in two months.
Regional markets also weakened on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.7% after a volatile start, while Japan’s Nikkei fell 0.8% and S&P 500 e-mini futures eased 0.3%.