KARACHI – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index suffered a sharp decline on Monday, dropping more than 4,000 points during intraday trading.
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By 12:09pm, the index fell by 4,770.14 points, or 3.14 percent, to 146,937.37 points from the previous close of 151,707.51 points. Analysts attributed the steep fall to ongoing geopolitical tensions and the absence of positive economic triggers, which have dampened investor sentiment.
Last week, the KSE-100 index had already recorded a modest decline of 0.68 percent week-on-week, according to Topline Securities Ltd. The decline reflected sustained investor caution amid rising inflationary pressures linked to the escalating conflict in the Middle East. Analysts noted that the market’s direction would remain closely tied to geopolitical developments in the coming days.
Earlier last week, the PSX saw a brief recovery, driven by optimism over ceasefire negotiations and mediation efforts involving multiple countries, including Pakistan. However, the rally proved short-lived as talks failed to yield a breakthrough.
The global market environment remained under pressure, particularly after oil prices surged. Tehran’s rejection of a 15-point US proposal and ongoing restrictions on vessel movements through the Strait of Hormuz—a key route for global oil shipments—fueled uncertainty. Rising oil costs have heightened inflationary concerns, further weighing on Pakistan’s equity market.
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Investors are closely monitoring both domestic and international developments, as persistent geopolitical tensions and economic uncertainty continue to influence trading sentiment.