KSE-100 sheds 772 points in early trade

The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday, with the benchmark KSE-100 Index losing nearly 800 points during the opening phase of trading.

At around 10:15am, the KSE-100 Index stood at 174,556.32 points, down 772.50 points or 0.44%.

Selling activity was visible across several major sectors. Automobile assemblers, cement companies, commercial banks, oil marketing companies and refineries remained under pressure.

Several index-heavy stocks also traded in negative territory. These included Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Pakistan State Oil (PSO), Fauji Fertilizer Company (FFC), Meezan Bank Limited (MEBL), National Bank of Pakistan (NBP) and United Bank Limited (UBL).

The decline came after a difficult week for the local equity market. The KSE-100 had fallen 1.3% in the previous week to close at 175,328.81 points.

Market sentiment has remained cautious amid growing geopolitical tensions. Renewed military confrontations between the United States and Iran have increased uncertainty across global markets.

Higher international oil prices have added to investor concerns. Rising energy costs could increase inflationary pressure and place additional strain on Pakistan’s external account.

Global financial markets were also closely watching developments in the Gulf region on Monday. Asian equities moved higher after a stronger-than-expected US jobs report boosted expectations for global economic growth.

However, the outlook remained clouded by rising oil prices and escalating tensions involving the United States and Iran.

Iran has announced plans to establish a restricted maritime zone near the Strait of Hormuz. The development came after US forces reportedly struck Iranian tankers, while Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles towards US Navy vessels.

The Strait of Hormuz is a critical route for global energy supplies. Any prolonged disruption in the waterway could push oil prices significantly higher and increase inflation risks in major economies.

Brent crude rose 0.2% to around $96.45 a barrel on Monday. The benchmark had already gained almost 10% during the previous week.

US West Texas Intermediate crude also advanced 0.4% to approximately $91.85 a barrel.

The surge in oil prices has increased attention on upcoming inflation data from the United States. Investors are looking for indications of how higher energy costs could affect consumer prices and the future direction of monetary policy.

European markets also remained cautious ahead of a key European Central Bank interest-rate decision. Investors are assessing the possibility of further rate increases as policymakers seek to contain persistent inflationary pressures.

In Europe, EUROSTOXX 50 and DAX futures slipped around 0.1%, while FTSE futures remained broadly flat.

Trading activity in US markets was expected to remain subdued because of a public holiday. S&P 500 and Nasdaq futures were marginally lower.

Asian markets, meanwhile, posted broad gains. Japan’s Nikkei index recovered 2%, while South Korea’s benchmark climbed around 3%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained approximately 0.9%.