The Pakistan Stock Exchange (PSX) started the week on a negative note as renewed fighting between the United States and Iran increased geopolitical uncertainty and weighed on investor sentiment.
The benchmark KSE-100 Index fell 720.67 points, or 0.42%, to close at 176,975.67 points on Monday.
Selling pressure was witnessed across several major sectors, including automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies, and power generators.
Several index-heavy stocks also traded in negative territory. HBL, MCB, MEBL, MARI, OGDC, PPL, PSO, and HUBCO were among the major stocks affected by the selling pressure.
The renewed escalation between the United States and Iran heightened concerns among investors at the beginning of the trading week.
Market participants remained cautious over the potential economic impact of higher oil prices, rising global borrowing costs, and continued geopolitical tensions.
The developments also affected other Asian markets, with regional equities declining as investors assessed the potential consequences of the conflict for energy prices and global financial conditions.
Brent crude futures climbed 2.8% to $90.60 per barrel following US strikes on two Iranian launchers on Larak Island on Sunday.
Iran subsequently attacked US forces stationed in Jordan, according to reports, further increasing concerns about a wider escalation in the region.
Rising oil prices could create additional pressure on oil-importing economies, including Pakistan, by increasing energy costs and putting pressure on external balances.
The renewed conflict triggered losses across major Asian stock markets.
Japan’s Nikkei index declined 1.6%, while South Korean stocks fell 2.2%. Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.2%.
The regional sell-off reflected broader concerns about higher energy prices, elevated bond yields, and the potential economic impact of escalating geopolitical tensions.
For Pakistan, investors are likely to continue monitoring developments in the Middle East, particularly movements in international oil prices and their potential impact on the country’s economy and corporate earnings.
