KSE-100 falls over 500 points as Hormuz shipping attacks weigh on PSX

The KSE-100 Index dropped more than 500 points in the opening minutes of Wednesday's session, as concern over continuing attacks on shipping in the Strait of Hormuz pulled investors out of the market. At 9:45am, the benchmark was at 178,812.16, down 523.08 points or 0.29%.

Selling was broad. Automobile assemblers, cement makers, commercial banks, oil and gas exploration companies and oil marketing companies all traded lower. Index-heavy names including HUBCO, SSGC, MARI, PPL, MCB, MEBL, NBP and UBL were in the red.

The retreat follows a sharp rebound on Tuesday, when the benchmark jumped 5,448.56 points, or 3.13%, to close at 179,335.24, lifted by broad-based buying after US President Donald Trump's remarks on peace eased geopolitical tensions.

Global markets added their own pressure. Bonds fell and the dollar held firm after core US inflation ran at 0.3% month-on-month in October, above the 0.2% forecast. Fed Governor Christopher Waller had said such a reading would make him consider a 50-basis-point hike in December, while Dallas Fed President Lorie Logan said two more rate rises were needed, possibly rapidly. Fed funds futures now price a quarter-point move as essentially locked in, with a 10% probability of 50 basis points.

This is an intraday update; the index's closing level will show whether the dip deepens or buyers step back in.