The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday as failed negotiations between Iran and the United States (US) rattled investor sentiment and triggered widespread selling across the market.
Read More: PSX surges over 14,137 points amid improving regional situation
The benchmark index fell by 5,553.3 points, or 3.32%, plunging to an intraday low of 161,638.07 compared to the previous close of 167,191.37. During the session, the market fluctuated between a high of 163,429.78 and the day’s low, reflecting heightened volatility amid geopolitical uncertainty.
Market analysts said investor confidence was hit after diplomatic talks failed to produce a breakthrough, while renewed tensions around the Strait of Hormuz added further pressure. Concerns intensified after reports that the United States would tighten restrictions on maritime traffic linked to Iranian ports, raising fears of disruption in global energy supply routes.
According to independent analyst AAH Soomro, the inability to secure a long-term ceasefire has disappointed investors. He noted that rising oil prices—climbing back above $100 per barrel—have added inflationary pressure and increased risk aversion in emerging markets like Pakistan.
He added that volatility is expected to persist in the coming days unless diplomatic progress is achieved. Traders remain cautious as energy prices and geopolitical developments continue to drive market direction.
In parallel, global equity markets also showed mixed performance. South Korea’s KOSPI Index dropped by 2% before recovering part of its losses, while Japan’s Nikkei 225 slipped marginally by 0.3%, reflecting broader regional concerns.
The previous trading session had seen gains in the PSX, with the KSE-100 rising by 1,673.87 points, highlighting the sharp reversal in sentiment within just one day.
Read More: PSX surges as ceasefire lifts investor sentiment
Analysts say Pakistan’s market remains highly sensitive to global oil prices and geopolitical developments, particularly in the Middle East, where tensions can quickly translate into financial market volatility.