The Pakistan Stock Exchange came under strong selling pressure on Monday as escalating tensions in the Middle East rattled investor sentiment and triggered a sharp market decline.
The benchmark KSE-100 Index fell by nearly 1,600 points in early trading. By 11:44am, the index was recorded at 164,025.57, down 1,570.50 points or 0.95%.
Selling was observed across major sectors including cement, banking, fertiliser, oil and gas, power generation, and refineries. Heavyweight stocks such as Oil and Gas Development Company, Pakistan Petroleum Limited, Habib Bank Limited, and United Bank Limited all traded in negative territory.
Market analysts linked the downturn to rising geopolitical uncertainty following developments in the Middle East, which have heightened risk aversion among investors.
Global crude oil prices climbed above $110 per barrel after reports of a drone attack on the Barakah Nuclear Power Plant. The United Arab Emirates described the incident as a dangerous escalation, further intensifying concerns over regional stability.
The surge in oil prices has raised alarm for energy-importing economies like Pakistan, where higher global energy costs could widen external pressures and inflationary risks.
International markets also reacted negatively. Asian equities weakened as investors responded to rising oil prices and geopolitical tensions. Japan’s Nikkei 225 fell 1.1%, while the MSCI Asia-Pacific index outside Japan declined 0.9%.
Investors are also awaiting key global triggers, including corporate earnings from Nvidia and upcoming Federal Reserve meeting minutes.
Last week, the KSE-100 Index had already declined by 3.2%, losing 5,519 points amid persistent uncertainty. Analysts say continued instability in the Strait of Hormuz and disruptions in global shipping routes are adding further pressure on sentiment.
The broader outlook remains cautious as investors monitor developments in both global energy markets and geopolitical hotspots.
