PSX plunges over 4,800 points as Middle East tensions trigger broad-based selling

The Pakistan Stock Exchange (PSX) came under pressure on Monday as escalating tensions in the Middle East triggered widespread selling across key sectors, with the benchmark KSE-100 Index plunging over 3% at the closing.

According to the PSX website, the market opened on a negative note, with the KSE-100 declining 1,500 points in the early minutes of the trade. At 11:30 am, the index fell to the lowest level of 144,656.97, shedding 7,050.54 points. As the session progressed, the market recovered some losses and settled at 146,842.97, declining by 4864.54 or 3.21% from the previous close.

Selling was seen across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies, power generation and refineries. Index-heavy stocks, including Attock Refinery, Hub Power, Mari Petroleum, Oil and Gas Development Company, Pakistan Petroleum, Habib Bank, MCB Bank, Meezan Bank and National Bank traded lower.

Market participants attributed the decline to uncertainty surrounding the regional conflict and its impact on global energy markets. 

Analysts said investor sentiment remains tied to geopolitical developments, with expectations that volatility will continue until there is clarity on the situation. They noted that any positive development, such as a ceasefire, could help stabilise the market.

The decline follows a volatile previous week, when the KSE-100 Index closed at 151,707.52 points, down 1,032.85 points or 0.7% week-on-week.

Global markets also weakened, with Asian stocks falling as rising oil prices increased inflation risks and concerns over economic slowdown.

Japan’s Nikkei dropped 4.7%, South Korea’s market fell 4.2%, and MSCI’s Asia-Pacific index excluding Japan declined 1.2%.

US futures also moved lower, with S&P 500 futures down 0.7% and Nasdaq futures declining 0.9%, while European futures also traded in negative territory.

Oil and commodity prices have risen amid disruptions linked to the Strait of Hormuz, increasing costs for energy, transport and industrial inputs, which has added pressure on global equities.