The Pakistan Stock Exchange (PSX) came under significant selling pressure on Monday as escalating tensions in the Middle East and a sharp rise in global oil prices dampened investor confidence.
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The benchmark KSE-100 Index fell to an intraday low of 179,448.52, losing 2,793.25 points, or 1.53%, from its previous close of 182,241.77. During the trading session, the index reached an intraday high of 181,106.81 but remained in negative territory, reflecting cautious market sentiment.
Market analysts attributed the decline to renewed hostilities between the United States and Iran, which have heightened concerns over regional stability and the security of global energy supplies. The latest escalation pushed international crude oil prices up by more than 4%, raising fears of higher inflation and increased import costs for oil-dependent economies, including Pakistan.
Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, said investor concerns over rising inflation, expensive crude oil and the potential impact on Pakistan’s external account triggered widespread selling across the market.
Brokerage firms also warned that market sentiment is likely to remain volatile as investors closely monitor geopolitical developments and macroeconomic indicators. Analysts noted that uncertainty surrounding the Strait of Hormuz, a vital global shipping route for oil exports, continues to influence financial markets worldwide.
Despite the broad-based decline, some analysts observed buying interest at lower levels, suggesting investors remain hopeful that diplomatic efforts could help ease regional tensions and stabilise global markets.
The latest losses reversed part of Friday’s gains, when the KSE-100 Index had advanced by 982.10 points to close at 182,241.78. Market participants said future trading sessions will largely depend on developments in the Middle East, movements in global oil prices and investor expectations regarding inflation and interest rates.
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Investors are expected to remain cautious in the near term as geopolitical uncertainty and commodity price volatility continue to shape market direction.