KARACHI: Equity investors lost a staggering Rs706 billion in a single session amid persistent panic stemming from geopolitical developments fuelling a surge in oil prices, following Donald Trump`s imposition of a 20 per cent charge on ships navigating the Strait of Hormuz. The Pakistan Stock Exchange (PSX) came under extreme selling pressure on Tuesday, pulling the benchmark KSE-100 index below the 174,000 level.

Topline Securities Ltd said the PSX witnessed a bloodbath, with the index plunging 6,408.23 points, or 3.56 per cent, to close at 173,519. The sharp sell-off was driven by heightened geopolitical tensions following the reported collapse of theinterim peace arrangement between Washington and Tehran.

Investor sentiment deteriorated after reports that the US reimposed a naval blockade and conducted air strikes, while Iran responded by targeting additional oil tankerstransiting the strait.

The escalation fuelled concerns about regional stability, potential disruptions to global oil supplies, and heightened risk aversion across financial markets, prompting broad-based selling in the market.On the activity front, OGDC led the market by traded value at Rs2.73 billion, followed by Maple Leaf Cement Factory (Rs2.57bn), Pakistan Petroleum (Rs1.65bn), DG Khan Cement (Rs1.60bn) and Fauji Fertiliser Company Ltd (R1.41bn).Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said that PSX extended overnight weakness, and the benchmark index came under intense selling pressure as escalating geopolitical tensions fuelled widespread panic among investors.The market opened sharply lower and stayed under pressure throughout the session, with participants offioading equities amid heightened geopolitical uncertainty and a sharp rise in international oil prices.

On the index contribution front, United Bank, Engro Holdings, Fauji Fertiliser, Lucl(y Cement, MeezanBanl(, Oil and Gas Development Company, Habib Bank, MCB Bank, Pakistan Petroleum, and Hub Power were the top laggards, collectively wiping 3,264 points off the benchmark.

Amid a bearish trend, investor participation showed panic-selling, with trading volume increasing by 7.96pc to 912.6 million shares. Total turnover surged by 28.30pc to Rs45.61 billion.

Cnergyico PK led the volume chart with 84.5 million shares traded.

Analysts anticipate that the market trend will continue to be primarily influenced by geopolitical developments.