The Pakistan Stock Exchange (PSX) faced a sharp selloff on Wednesday as renewed geopolitical tensions in the Middle East sparked panic among investors, dragging the benchmark KSE-100 Index down by 4,626 points.

Market sentiment weakened after US President Donald Trump declared the Iran ceasefire effectively over and fresh US strikes on Iranian targets heightened fears of a broader regional conflict. The escalation also pushed global oil prices higher, adding pressure on investor confidence.

The KSE-100 Index closed at 181,629 points, registering a decline of 4,626 points or 2.48%.

The market decline was further amplified by profit-taking as investors locked in gains after the index’s recent strong performance. Despite improving macroeconomic indicators, uncertainty over regional developments triggered widespread selling across sectors.

Heavyweight stocks including UBL, FFC, ENGROH, LUCK, and HUBC remained the biggest contributors to the index decline, collectively dragging the benchmark lower by around 1,528 points.

Trading activity remained elevated, with 1.55 billion shares changing hands during the session, while the total traded value stood at Rs62.4 billion.

WTL emerged as the most actively traded stock, recording a volume of around 220 million shares during the session.