KARACHI: The Pakistan Stock Exchange (PSX) came under intense selling pressure on Monday, plunging sharply as rising global oil prices and geopolitical tensions triggered a wave of risk-off sentiment among investors.
According to Beyond Time News, the benchmark KSE-100 index fell by 3,791 points, or 2.29%, as fears of inflation and external instability weighed heavily on market confidence.
Market Reacts to Global Oil Surge and Geopolitical Risks
Investor sentiment weakened amid concerns over stalled US-Iran negotiations, rising tensions in the Middle East, and uncertainty surrounding global energy supplies.
Crude oil prices surged above $110 per barrel, intensifying fears of higher inflation and pressure on Pakistan’s external account.
Reports of escalating regional risks, including concerns around key energy infrastructure and shipping routes, further added to market volatility.
Index Movement and Intraday Swings
The KSE-100 index touched an intra-day high of 164,939 points before sliding to a low of 161,613 points, eventually closing at 161,805 points.
The session reflected broad-based selling across almost all major sectors as investors moved away from equities.
Heavy Losses Across Key Sectors
Major pressure was seen in banking, oil and gas exploration, cement, fertiliser, auto, power generation, and oil marketing companies.
Index-heavy stocks such as OGDC, Pakistan Petroleum, Meezan Bank, UBL, HBL, Fauji Fertiliser, Hub Power, and Lucky Cement were among the biggest drags on the index.
Only a few stocks managed to post gains in an otherwise weak session.
Analysts Cite Inflation and External Pressures
Market analysts said the sell-off was driven by rising global oil prices, geopolitical uncertainty, and concerns over Pakistan’s inflation outlook and external account stability.
Recent macroeconomic data showing a current account deficit also added to investor caution.
Oil Prices Hit Two-Week High as Iran Conflict Escalates
Volumes Decline as Investors Turn Cautious
Trading activity slowed, with total volumes dropping to 499.8 million shares compared to the previous session.
Out of 487 traded companies, 383 declined, while only 66 advanced.
Outlook Remains Cautious
Analysts said sustained recovery in the market may depend on easing geopolitical tensions and stabilization in global oil prices, which continue to drive volatility in emerging markets like Pakistan.
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