The Pakistan Stock Exchange (PSX) witnessed sharp selling pressure on Monday as escalating tensions between the United States and Iran, coupled with rising global oil prices, dampened investor sentiment and triggered a broad-based market decline.
The benchmark KSE-100 Index opened significantly lower, falling more than 2,700 points in early trading to an intraday low of 179,448.52, according to data available on the PSX website.
Although the market recovered part of its early losses during the session, selling pressure persisted. By 1:20 pm, the KSE-100 Index was trading at 180,540.96, down 1,700.81 points, or 0.93%, from the previous close.
The downturn was broad-based, with losses recorded across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing firms, and power generation companies.
The latest decline follows a weak performance last week, when renewed military strikes involving the United States and Iran ended the market’s winning streak. The KSE-100 Index lost 3,130.43 points, or 1.7% on a week-on-week basis, to close at 182,241.77.
Investor concerns were also reflected in global financial markets. Major stock indices in Europe and Asia traded lower as geopolitical uncertainty and higher energy prices weighed on market sentiment. MSCI’s global stock index slipped 0.38%, while Europe’s STOXX 600 fell 0.12%, led by losses in technology stocks.
In the United States, Nasdaq futures dropped 1.20%, while S&P 500 futures declined 0.40%. Japan’s Nikkei 225 also fell 1.9%, reflecting the broader risk-off mood across international markets.
Meanwhile, oil prices surged by more than 3% after renewed military strikes between Washington and Tehran reignited concerns over the security of energy shipments through the Strait of Hormuz, a key global oil transit route.
Brent crude rose 3.51% to $78.68 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 3.47% to $73.89 a barrel, adding to concerns over inflation and the economic impact of higher energy costs.
