The Pakistan Stock Exchange (PSX) observed selling pressure on Thursday, with the KSE-100 Index shedding over 5,400 points amid rising geopolitical uncertainty after Iran rejected a US-backed ceasefire proposal.

The market opened relatively stable and even saw a brief uptick in early trading, touching an intraday high of 157,591.23, but this momentum quickly faded, and the index entered a consistent downward trajectory.

Selling intensified further during the final hours of trading, pushing the index to the intraday low of 152,668.07, indicating panic selling.

At close, the benchmark index settled at 152,907.96, down by 5,405.48 points or 3.41%.

Iran rejected a US proposal aimed at ending the ongoing war, setting out five conditions for a ceasefire, including international recognition and guarantees of Iranian sovereignty over the Strait of Hormuz, insisting that any halt to hostilities will occur solely on Tehran’s terms and timetable, state-run Press TV reported on Wednesday, citing a senior Iranian political-security official.

“Iran’s ‘high bar’ for ceasefire talks, demanding reparations and full control of the Strait, has made investors realise that a final deal is still far off,” said Behtari Capital.

On Wednesday, PSX staged a powerful recovery as renewed diplomatic momentum in the Middle East and softening global oil prices triggered broad-based buying across sectors, lifting the benchmark KSE-100 Index by more than 4,300 points in one of the strongest single-day performances in recent weeks.

The KSE-100 Index settled at 158,313.45 points, gaining 4,347.08 points or 2.82%.