KARACHI: The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday as renewed hostilities between the United States and Iran, escalating tensions in the Middle East and a sharp rise in global oil prices dampened investor sentiment.
How much did the benchmark index fall?
The benchmark KSE-100 Index dropped as much as 2,793.25 points, or 1.53%, to an intraday low of 179,448.52, compared with the previous close of 182,241.77. The index later recovered some losses but remained down 1,497.06 points, or 0.82%, at an intraday high of 180,744.71.
What triggered the selling pressure?
Market analysts attributed the decline to growing concerns over the economic impact of rising global crude oil prices and heightened geopolitical uncertainty in the Middle East.
According to market participants, higher oil prices have raised fears of increased inflation and pressure on Pakistan’s external account, prompting investors to adopt a cautious approach.
What are analysts saying about market sentiment?
Brokerage firms said investor sentiment is expected to remain sensitive to developments in the Middle East and broader macroeconomic conditions.
Analysts noted that while geopolitical risks continue to weigh on the market, buying interest emerged at lower levels on expectations that diplomatic efforts could eventually help ease tensions.
How have global oil prices reacted?
International oil prices rose by more than 4% on Monday after renewed military exchanges between the United States and Iran raised concerns over potential disruptions to energy supplies through the Strait of Hormuz, a key global shipping route.
The latest escalation followed renewed military strikes and maritime security incidents in the Gulf, increasing uncertainty in global energy markets.
How did the market perform in the previous session?
Monday’s decline reversed gains recorded in the previous trading session. On Friday, the KSE-100 Index had closed 982.10 points, or 0.54%, higher at 182,241.78.