KSE-100 drops more than 2,200 points while rising oil prices and global uncertainty weigh on investor confidence
KARACHI: The Pakistan Stock Exchange (PSX) opened sharply lower on Monday as escalating tensions between the United States and Iran rattled investors, triggering widespread selling across major sectors and dragging the benchmark KSE-100 Index down by more than 2,200 points during early trading.
By 9:43am, the benchmark KSE-100 Index stood at 179,972.52, down 2,269.25 points, or 1.25 percent, from the previous close.
Heavy selling emerged across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing firms and power generation. Major index-weighted stocks, including HUBCO, Mari Energies, OGDC, PSO, SSGC, SNGPL, MCB, MEBL, NBP and UBL, traded in negative territory as investors reduced exposure amid heightened geopolitical uncertainty.
The decline extended last week’s losses after the benchmark index fell 3,130.43 points, or 1.7 percent, to close at 182,241.77 points following renewed military exchanges between Washington and Tehran.
Global markets react to Gulf crisis
Meanwhile, international financial markets also weakened as reports of intensified fighting in the Gulf and Iran’s claim of closing the Strait of Hormuz pushed energy prices sharply higher and renewed fears of global inflation.
Brent crude futures climbed 4.1 percent to $79.11 per barrel, while US West Texas Intermediate crude rose 4.1 percent to $74.37 per barrel. Although US officials said about 20 commercial vessels had been escorted through the strategic waterway during the previous 24 hours, shipping activity remained limited.
Investors await economic signals
Asian markets also recorded broad losses. Japan’s Nikkei declined 1.6 percent, MSCI’s Asia-Pacific index excluding Japan fell 0.9 percent, and South Korea’s market dropped 5.4 percent amid continued pressure on technology shares.
Meanwhile, investors are closely monitoring upcoming US inflation data and corporate earnings, which could influence expectations for future monetary policy and determine market direction in the coming weeks.
