The Pakistan Stock Exchange (PSX) faced heavy selling pressure on Monday as escalating tensions between the United States and Iran, along with rising global oil prices, weakened investor confidence.
The benchmark KSE-100 Index fell more than 2,000 points during early trading, reaching an intraday low of 173,636.45 shortly after the market opened. However, the index recovered most of its losses in the second half of the session.
By 3:00 pm, the KSE-100 was trading at 175,581.62, down 221.16 points or 0.13 percent from the previous close of 175,802.80.
Early trading witnessed selling pressure across several major sectors, including automobile assemblers, cement companies, commercial banks, fertiliser firms, oil and gas exploration companies, oil marketing companies, and power generation businesses.
Market participants remained cautious due to uncertainty surrounding geopolitical developments in the Middle East and their potential impact on global energy markets.
The PSX had already remained under pressure during the previous week, with geopolitical concerns and higher oil prices affecting market sentiment.
The KSE-100 Index declined 3.5 percent week-on-week, losing 6,438.97 points to close at 175,802.80. The decline marked the index’s second consecutive weekly loss.
International markets also faced pressure as rising crude oil prices increased concerns about inflation and economic stability.
The escalation of tensions in the Gulf pushed oil and gas prices higher, while investors remained cautious ahead of major technology earnings reports expected during the week.
Asian markets showed mixed performance, with MSCI’s index of Asia-Pacific shares outside Japan declining 0.3 percent. Chinese blue-chip stocks gained 1.4 percent, while South Korea’s technology-heavy market dropped 4.1 percent.
Oil prices, which had earlier surged due to fears of supply disruptions through the Strait of Hormuz, eased after Iran’s foreign ministry indicated that negotiations with the United States could be considered based on national interests.
Brent crude futures declined 14 cents, or 0.16 percent, to $87.96 per barrel after touching a high of $91.42, the highest level since June 11.
US West Texas Intermediate (WTI) crude fell 50 cents, or 0.61 percent, to $81.99 per barrel after reaching its highest level since June 12.
Investors are expected to continue monitoring geopolitical developments, oil price movements, and global market trends for further direction.
