The Pakistan Stock Exchange faced intense selling pressure on Monday after failed negotiations between the United States and Iran rattled investor confidence. The benchmark KSE-100 Index dropped sharply in early trading, losing nearly 4,800 points within minutes. By 10:04am, the index stood at 162,057.43, down 5,133.94 points or 3.07 percent.
Broad-Based Selling Across Key Sectors
Investors rushed to offload shares across major sectors, including automobiles, cement, commercial banks, and oil and gas exploration. Additionally, oil marketing companies, power generation firms, and refineries also recorded heavy losses. Key stocks such as ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI traded in negative territory. Consequently, the widespread decline reflected growing uncertainty following geopolitical tensions. This downturn contrasted sharply with the previous week, when optimism over ongoing US-Iran talks had lifted the index by more than 1,600 points, closing at 167,191.38.
Global Fallout and Economic Concerns
Meanwhile, global markets also reacted negatively to the diplomatic breakdown. JD Vance confirmed that talks in Islamabad ended without agreement after 21 hours, citing Iran’s refusal to accept US conditions. In response, Mohammad Baqer Qalibaf emphasized that a single round of talks could not resolve deep mistrust. Furthermore, oil prices surged, with Brent crude jumping 8 percent to $103 per barrel, while the dollar strengthened. Equity markets in Asia declined modestly, as Japan’s Nikkei, South Korea’s KOSPI, and Australia’s S&P/ASX 200 all posted losses. As tensions escalated, reports suggested the US may consider further measures, intensifying concerns over regional stability and global energy supplies.
