The Pakistan Stock Exchange (PSX) continued its downward trajectory on Monday, with the benchmark KSE-100 Index plunging sharply during intraday trading amid heightened global risk aversion and escalating geopolitical uncertainty.
The index fell by 2,171.16 points, or 1.31%, dropping to 163,424.91 points compared to the previous close of 165,596.07 points, reflecting sustained selling pressure across major sectors.
Market weakness was not isolated to Pakistan, as Asian equities broadly declined, tracking a global downturn driven by rising geopolitical tensions in the Middle East and concerns over energy supply disruptions. Oil prices climbed by more than 2%, reinforcing investor anxiety over potential supply shocks.
Investor sentiment remained under pressure due to the lack of progress in US–Iran negotiations, with markets increasingly sensitive to developments affecting the Strait of Hormuz, a critical global oil transit route. Fears of escalation and potential supply constraints contributed to risk-off positioning across regional markets.
In Asia, equity markets mirrored the negative trend. Tokyo fell 1.0%, while Hong Kong dropped 1.4%. Shanghai remained flat, but broader regional markets including Sydney, Bangkok, Taipei, Singapore, and Wellington all posted losses. Jakarta saw a sharper decline of 2.7%, reflecting widespread caution among investors.
Domestically, the PSX had already been under sustained pressure. The benchmark index extended its losing streak to a sixth consecutive session on Friday, shedding 902.77 points to close at 165,596.07 points, as geopolitical uncertainty and macroeconomic concerns continued to weigh on market confidence.
Analysts suggest that near-term market direction will remain closely linked to developments in US–Iran diplomacy, fluctuations in global crude oil prices, and broader international risk sentiment. Additionally, trading activity is expected to remain subdued as investors adopt a cautious stance ahead of the upcoming federal budget announcement.
Overall, the combination of external geopolitical risks and domestic uncertainty continues to drive volatility in Pakistan’s equity market, with sentiment firmly tilted toward the downside.