PSX plunges over 1,900 points amid rising Middle East tensions

The Pakistan Stock Exchange (PSX) witnessed a sharp decline at the start of trading on Monday as investors reacted to rising geopolitical tensions in the Middle East and growing uncertainty in global financial markets.

Karachi: The Pakistan Stock Exchange (PSX) witnessed a sharp decline at the start of trading on Monday as investors reacted to rising geopolitical tensions in the Middle East and growing uncertainty in global financial markets. Heavy selling pressure across major sectors pushed the benchmark KSE-100 Index down by more than 1,900 points within the first few minutes of trading.

By 9:30 a.m., the KSE-100 Index had fallen to 168,565.62 points, registering a decline of 1,913.32 points, or 1.12 percent, from the previous close. The downturn reflected investor concerns over escalating regional conflicts, surging oil prices, and weakening sentiment across international equity markets.

Market participants reported widespread selling activity in several key sectors, including automobile manufacturing, cement, commercial banking, oil and gas exploration, oil marketing companies, power generation, and refining. Many of the index-heavy stocks remained under pressure throughout the opening session, contributing significantly to the benchmark index’s decline.

Among the major laggards were shares of leading companies such as Attock Refinery Limited, Hub Power Company, Mari Energies, Oil and Gas Development Company, Pakistan Petroleum Limited, Pakistan Oilfields Limited, Pakistan State Oil, MCB Bank, and Meezan Bank, all of which traded in negative territory during early hours.

The latest decline follows a difficult week for the local bourse. During the previous trading week, the KSE-100 Index lost nearly 2 percent, shedding 3,483.87 points to close at 170,478.94 points. Analysts attributed the decline to investor caution stemming from heightened tensions between the United States and Iran, concerns over regional security, and the impact of rising global energy prices.

Market experts noted that geopolitical risks have increasingly become a major factor influencing investor behavior. The prospect of prolonged instability in the Middle East has raised fears of disruptions to global energy supplies, resulting in higher crude oil prices and increased volatility across international markets.

The negative sentiment was not limited to Pakistan. Equity markets across Asia recorded substantial losses as investors moved away from risk assets. Technology and semiconductor-related stocks, which had driven much of the global market rally in recent months, faced significant selling pressure amid concerns that valuations had become overstretched.

South Korea’s benchmark KOSPI index led regional losses, falling around 5 percent and extending its retreat from recent record highs. Japan’s Nikkei index dropped nearly 4 percent, while Taiwan’s main stock market index declined close to 4 percent as investors reassessed growth prospects and monetary policy expectations.

Adding to market concerns, a stronger-than-expected U.S. employment report reinforced expectations that interest rates may remain elevated for longer than previously anticipated. The data prompted investors to reassess the likelihood of future monetary easing by the U.S. Federal Reserve, resulting in increased pressure on global equities and bonds.

Meanwhile, international oil prices continued to climb amid reports of fresh military developments in the Middle East. Brent crude futures rose sharply, reaching approximately $96 per barrel, as fears of a broader regional conflict heightened concerns about potential disruptions to global oil supplies.