ISLAMABAD: Heavy selling pressure gripped the Pakistan Stock Exchange (PSX) on Monday as escalating tensions in the Middle East rattled investor confidence and pushed the benchmark KSE-100 Index down by nearly 3,500 points during intraday trading.
At 3:20pm, the KSE-100 Index stood at 162,098.34 points, reflecting a decline of 3,497.73 points or 2.11%. Investors offloaded shares across major sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing firms, power generation and refineries.
Index-heavy stocks such as Attock Refinery Limited (ARL), HUBCO, Mari Energies, OGDC, Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Habib Bank Limited (HBL), Meezan Bank (MEBL) and United Bank Limited (UBL) traded deep in the red as market sentiment weakened further.
Analysts linked the sharp decline to mounting geopolitical uncertainty after reports emerged of a drone attack targeting the UAE’s Barakah nuclear site. Following the incident, oil prices surged above $110 per barrel, intensifying fears for energy-importing economies such as Pakistan.
Behtari Capital described the attack as a “dangerous escalation,” warning that the return of a significant war premium in global oil markets was negatively affecting Pakistan’s economy and financial markets.
Meanwhile, investors also reacted to continued disruptions in the Strait of Hormuz, a key global shipping route responsible for nearly 20% of the world’s oil trade. International markets also remained under pressure, with Asian stocks declining as rising oil prices and geopolitical risks overshadowed optimism surrounding the technology sector and upcoming earnings from chip giant Nvidia.
