PSX sinks 1,000 points amid Middle East tensions

The Pakistan Stock Exchange (PSX) remained under heavy selling pressure on Monday as rising tensions in the Middle East triggered fresh concerns

The Pakistan Stock Exchange (PSX) remained under heavy selling pressure on Monday as rising tensions in the Middle East triggered fresh concerns among investors. The benchmark KSE-100 Index lost more than 1,000 points during intraday trading, reflecting growing uncertainty in both local and global financial markets.

The market opened on a negative note and selling continued throughout the session. Investors remained cautious following the escalation of military conflict between the United States and Iran, which has raised fears of a wider regional crisis. The worsening security situation also pushed international oil prices higher, increasing concerns about inflation and its impact on global economic growth.

By around midday, the KSE-100 Index had declined by 1,027.82 points, or 0.58 percent, to 174,774.96.

Selling pressure was witnessed across almost all major sectors of the market. Automobile assemblers, cement manufacturers, commercial banks, fertilizer companies, oil and gas exploration firms, oil marketing companies and power generation companies all traded in negative territory.

Several heavyweight stocks also recorded losses. These included Oil and Gas Development Company (OGDC), Mari Energies, Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Hub Power Company (Hubco), MCB Bank, Meezan Bank and the National Bank of Pakistan. The decline in these major stocks added significant pressure on the benchmark index.

The latest fall came after another difficult week for the stock market. During the previous week, the KSE-100 Index remained under pressure as investors reacted to rising geopolitical risks and a sharp increase in global crude oil prices. The benchmark index declined by 6,438.97 points, or 3.5 percent, to close the week at 175,802.80 points. It was the market’s second consecutive weekly decline.

International markets also reflected growing investor concerns. Asian stock markets traded mostly lower as the conflict in the Gulf region intensified. Investors feared that higher oil prices could increase inflation around the world and delay interest rate cuts by major central banks.

Global oil prices continued to rise after military exchanges between the United States and Iran expanded. Brent crude climbed above $90 per barrel for the first time in more than a month, while US crude also posted strong gains. Rising energy prices have increased fears of higher production costs, weaker economic growth and continued inflationary pressure.