Stocks dive 1,690 points; ME battle fuels sell-off

According to The Express Tribune, the KSE-100 index dropped 1,690.40 points, or 0.96 per cent, during Wednesday's session on the Pakistan Stock Exchange. The decline was driven by the continuing conflict between the United States and Iran and worries over energy supplies passing through the Strait of Hormuz. Heavy selling started early, and the index was already down 1,663.16 points by 9:34am.

Banks, cement makers and oil and gas explorers carried most of the weight, and the index traded in a range bounded by 174,562.88 and an intra-day peak of 175,841.83. Renewed attacks between the two countries raised fresh doubts over oil and gas supplies and the safety of shipping routes, while crude climbed further. Asian and European markets also fell after US airstrikes pushed oil prices back to levels last seen in July.

KTrade Securities put the closing level at 174,776.60, while overall volume eased to 610.2 million shares from 784.5 million on Tuesday. Of the 501 companies traded, 356 fell and 113 rose, and the value of shares traded reached Rs31.9 billion. Foreign investors sold Rs710 million worth of shares, according to the National Clearing Company.