The Pakistan Stock Exchange (PSX) faced a severe downturn on Monday as the KSE-100 Index fell nearly 10%, reflecting investors’ growing panic over the escalating conflict between Iran, Israel, and the United States. Trading was halted temporarily when the index dropped more than 5%, and although it bounced back briefly, selling pressure returned, leaving the market deep in the red.
From the very start of trading, sellers dominated the market. By 9:22 am, the KSE-100 Index had tumbled to 152,991 points, down 15,071 points (8.97%), triggering an automatic halt as per Pakistan Stock Exchange rules. Trading resumed an hour later, and the index recovered to 159,328 points briefly, but momentum quickly faded. By 1:25 pm, the benchmark had fallen further to 151,822 points, down almost 10% for the day.
Selling was widespread across major sectors, including banking, cement, oil, and power. Heavyweights like HBL, MCB, MEBL, MARI, OGDC, POL, PPL, HUBCO, and ARL all faced sharp declines.
This decline follows a week of steady declines. Last week, the KSE-100 fell by 5,107 points (2.9%), closing at 168,062 points, as investors stayed cautious amid security and regional concerns. Global oil prices surged alongside the market turmoil, while gold gained as nervous investors sought safer assets.
The ongoing military conflict has created fears that vital routes like the Strait of Hormuz, which carries nearly a fifth of the world’s seaborne oil and liquefied natural gas, could face disruption. Any sustained rise in oil prices would not only worsen inflation but also increase the cost of living and doing business in Pakistan and beyond.