The Pakistan Stock Exchange (PSX) witnessed heavy selling on Monday as the benchmark KSE-100 Index plunged more than 2,500 points amid escalating tensions in the Middle East, rising international oil prices, and continued concerns over global energy supplies.
According to PSX data, the KSE-100 Index fell more than 1,700 points shortly after the market opened. Selling pressure intensified later in the session, pushing the index to an intraday low of 167,441.63, down more than 3,100 points from the previous close.
The market recovered some losses toward the end of trading, with the KSE-100 Index settling at 167,970.65, down 2,541.20 points or 1.49%.
Selling remained broad-based across several sectors, including automobile assemblers, cement, commercial banks, fertiliser, insurance, pharmaceuticals, oil and gas exploration, oil marketing companies, and power generation.
Investor sentiment has remained under pressure due to renewed tensions between Iran and the United States and the wider Middle East conflict. Concerns over potential disruptions to global trade and higher energy costs have added to market uncertainty.
The decline also came after the State Bank of Pakistan’s Monetary Policy Committee decided to keep the policy rate unchanged at 11.5% on September 14. Seven of the 10 MPC members voted in favour of maintaining the existing rate.
The central bank noted that the intensification of the prolonged Middle East conflict had pushed global commodity prices higher and contributed to continued supply chain disruptions.
International oil prices also remained elevated. Brent crude futures rose $3.43, or 3.3%, to $108.04 per barrel, while West Texas Intermediate (WTI) futures increased $3.49, or 3.5%, to $103.54 per barrel.
Market sentiment is expected to remain sensitive to geopolitical developments, oil prices, the upcoming IMF review, and domestic economic policy decisions. Any easing of tensions in the Middle East could help reduce pressure on oil prices and support investor confidence.
