Volatile PSX closes slightly higher as regional escalation weighs on sentiment 

The Pakistan Stock Exchange (PSX) witnessed a volatile session on Monday as escalating US-Iran hostilities in the Middle East and rising international oil prices weighed on investor sentiment.

According to the PSX website, the index dropped over 2,000 points to a low of 173,636.45 shortly after the opening bell. The market recovered most of its losses during the second half of the session. 

Early selling was recorded across automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies and power generation firms.

At close, the index settled at 175,927.73, with a slight increase of 124 points from the previous close.

The market had also remained under heavy pressure during the previous week as regional geopolitical tensions and rising oil prices weakened investor sentiment. The KSE-100 declined 3.5% week-on-week, losing 6,438.97 points to close at 175,802.80 and extending its losing streak to a second consecutive week.

The escalating conflict ​in the Gulf lifted oil and gas prices on Monday, fanning fears of inflation, sending bonds lower and leaving stocks on edge as a packed ‌week of major tech earnings is set to further test the artificial intelligence trade. 

S&P 500 futures were unchanged, while Nasdaq futures rose 0.2%. EUROSTOXX 50 futures were flat, and DAX and FTSE futures declined 0.1%.

MSCI’s index of Asia-Pacific shares outside Japan fell 0.3%, while Chinese blue-chip stocks gained 1.4%.

South Korea’s chip-heavy market dropped 4.1% after losing almost 9% last week as leveraged retail investors faced pressure. 

Japan’s Nikkei was closed for a holiday after declining 6.4% last week.

Oil prices reversed early ​gains on Monday after Iran's foreign ⁠ministry said negotiations with ​the U.S. could be pursued based ​on national interests.

Benchmark prices had earlier touched more than one-month highs ​on concern over disruption to ​shipments through the Strait of Hormuz.

Brent ‌crude ⁠futures were down 14 cents, or 0.16%, at $87.96 a barrel by 0852 GMT after hitting $91.42 ​for ​their highest ⁠since June 11. U.S. West Texas Intermediate crude ​was down 50 cents, ​or ⁠0.61%, at $81.99 after touching its loftiest level since June 12.