The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday as renewed US-Iran tensions weakened investor sentiment and raised concerns over potential disruptions to Middle Eastern energy supplies.
The benchmark KSE-100 Index opened sharply lower and fell as much as 858 points during early trading. Selling intensified later in the session, with the index touching an intraday low of 173,603.75 points.
At the close, the KSE-100 settled at 173,636.07 points, down 1,692.75 points, or 0.97%, from the previous close of 175,328.82.
Broad-based selling was witnessed across major sectors, with energy stocks among the areas facing significant pressure. Automobile assemblers, auto parts manufacturers, cement companies, commercial banks, oil and gas exploration and marketing firms, pharmaceuticals, power generators, refineries, and cable and electrical goods companies largely traded in negative territory.
The latest decline came after a difficult week for Pakistan’s equities. The KSE-100 had already lost 2,368 points, or 1.3% week-on-week, ending Friday’s session at 175,329 points.
Investor concerns have intensified amid escalating tensions between the United States and Iran, particularly around the Strait of Hormuz, a critical route for global energy shipments.
Reports of attacks involving vessels in and around the Gulf have raised fears of prolonged disruption to oil supplies. Brent crude futures rose $1.20, or 1.25%, to $97.48 per barrel, while US West Texas Intermediate (WTI) increased 1.25% to $92.62 per barrel.
Brent crude gained 7.8% last week, while WTI advanced nearly 10% as attacks and disruptions reduced oil flows through the Strait of Hormuz.
Despite the immediate pressure, three major brokerage firms expect Pakistan’s equity market to regain momentum, citing improving economic fundamentals, corporate earnings and the upcoming IMF review.
However, analysts continue to identify geopolitical uncertainty surrounding the US-Iran conflict as the key near-term risk for Pakistani equities.
International markets showed mixed performance on Monday. Japan’s Nikkei rebounded 2%, while South Korea’s benchmark gained 4.3%. Chinese blue-chip stocks edged 0.2% higher, while MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.5%.
With geopolitical tensions continuing to influence oil prices and regional markets, investors at the PSX are likely to remain cautious in the near term.
