The Pakistan Stock Exchange (PSX) opened sharply lower on Monday, with the KSE-100 Index tumbling to an intraday low of 147,828.88, down 3,878.63 points or 2.56% from the previous close, as global financial pressures weighed on market sentiment.
Traders attributed the sell-off to surging crude oil prices and rising government bond yields, which heightened concerns over imported inflation and stress on Pakistan’s external accounts. The benchmark index swung between gains and steep losses before settling deep in negative territory.
Market analysts pointed to risk aversion triggered by geopolitical tensions in the Middle East, with fears that widening conflict could disrupt trade and industrial activity, particularly through strategic chokepoints like the Red Sea and Strait of Hormuz.
Foreign investor sentiment remained weak: data showed net outflows from Treasury bills, Pakistan Investment Bonds and equities, reflecting a broader retreat from emerging-market exposure amid global volatility.
On the inflation front, weekly figures indicated a rise in consumer prices, adding to economic pressures.