Heavy losses hit key sectors in early trading

Rising geopolitical tensions rattled investor confidence at the Pakistan Stock Exchange on Monday, triggering a sharp decline in early trading. The benchmark KSE-100 Index dropped nearly 3,300 points within minutes of the opening bell. By 9:35am, the index stood at 170,646.01, reflecting a fall of 3,293 points or 1.89%.

Moreover, widespread selling pressure gripped major sectors, including cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation, and refining. Heavily weighted stocks such as HUBCO, MARI, OGDC, POL, PPL, PSO, SNGPL, MCB, MEBL, and UBL all traded in negative territory. Consequently, the broad-based decline highlighted investor concerns over escalating regional instability.

Global uncertainty fuels market volatility

However, the downturn follows a strong الأداء last week, when the PSX maintained a bullish trend. The KSE-100 Index had surged by 4%, gaining 6,748 points to close at 173,939, driven by improved sentiment and easing geopolitical concerns at the time.

Meanwhile, global markets also showed signs of volatility. Oil prices surged sharply, with Brent crude rising about 6% to $96 per barrel during early Asian trading. At the same time, the US dollar strengthened slightly after recent losses, while equity markets displayed mixed performance. US S&P 500 futures declined by around 0.7%, even after the index reached a record high previously. In Asia, Australia’s S&P/ASX 200 slipped, whereas Japan’s Nikkei posted modest gains.

Furthermore, tensions in the Middle East intensified uncertainty. The fragile ceasefire between the United States and Iran faced doubts after a recent ship seizure and threats of retaliation. As a result, shipping activity through the Strait of Hormuz remained constrained, adding to global economic concerns.